Texas lawmakers consider bills to launch gold-backed digital currency

The Texas state legislature is considering bills that would establish a digital currency backed by gold. 

The Republican-backed bills, which were introduced in the state House and Senate on the same day last month, would require the Texas comptroller to "establish a digital currency that is backed by gold so that each unit of the digital currency issued represents a particular fraction of a troy ounce of gold held in trust," according to the bills.

The gold may be stored in the Texas Bullion Depository, according to the bill.

U.S. currency was linked to gold until 1971, when then-President Richard Nixon ended the system over concerns about inflation and a possible gold run.

The proposed Texas system would give people an alternative and allow them to avoid using any possible Central Bank Digital Currencies, which the Federal Reserve may be considering.

Texas' proposed digital currency is unique in that it would be based on a physical asset, unlike the U.S. dollar and most cryptocurrencies.

Madeleine Hubbard is an international correspondent for Just the News. Follow her on Twitter or Instagram.