A Texas congressman says the state’s gold-backed digital currency could boost crypto adoption and inspire investors to explore Bitcoin.
According to a Texas congressman, the state’s proposed digital currency backed by gold could significantly increase the use of cryptocurrencies.
At the North American Blockchain Summit on Nov. 21, Republican Representative Cody Harris of the Texas State House of Representatives discussed the creation of a gold-backed cryptocurrency in Texas.
Harris made the case that a state-issued gold-backed token may act as a springboard for Texans to investigate digital assets like Bitcoin BTC during a fireside talk with David Duong of Coinbase.
Bitcoin’s “Stepping Stone”
In April 2023, two Texas lawmakers—Representative Mark Dorazi and Senator Bryan Hughes—introduced two different pieces of legislation to establish a gold-backed digital money that would be issued by the state.
According to the concept, a troy ounce of gold kept in trust would be represented by one unit of digital money.
Before switching to decentralized assets like Bitcoin, Harris said the program might assist skeptics get more comfortable with cryptocurrencies by providing a digital counterpart issued by the government.
According to Harris, a state-issued coin would provide some “comfort level” to individuals who are extremely hesitant to hold Bitcoin or investigate cryptocurrencies in comparison to tokens produced by businesses.
“This [state-issued digital currency backed by gold] is something safe that people can get their feet wet with. It’s more of a stepping stone to owning Bitcoin than competing with it or taking the place or something like that.”
“CBDC Is Bad For Country”
Harris expressed disapproval of a central bank digital currency (CBDC) while supporting Texas’ gold-backed digital currency initiative.
The legislator mentioned several possible risks connected to CBDCs, such as privacy issues and surveillance, when he stated during the fireside chat, “I think we would all agree that a CBDC is detrimental to the nation and the state of Texas.”
Before establishing a CBDC, Harris advised the public to ensure that the government appropriately addresses its objectives. He said:
“I think it makes it easier for us who are pro-bitcoin to have conversations about why someone should change their perspective on it. If we start at a CBDC, is it the goal of some parts of the US government? So let’s lock arms together and make sure that that doesn’t happen.”
Turner Wright did more reporting.