Texas Lawmaker Advocates Gold-Backed Digital Currency to Boost Crypto Adoption

According to Cointelegraph, a Texas lawmaker is advocating for a gold-backed digital currency as a means to enhance cryptocurrency adoption in the state. Cody Harris, a member of the Texas State House of Representatives from the Republican Party, discussed the potential of this initiative during the North American Blockchain Summit on November 21. In a conversation with Coinbase's David Duong, Harris suggested that a state-issued gold-backed token could act as an entry point for Texans interested in digital assets like Bitcoin (BTC). The proposal for a gold-backed digital currency in Texas was introduced through two separate bills by Senator Bryan Hughes and Representative Mark Dorazi in April 2023. The plan involves creating a digital currency where each unit represents a fraction of a troy ounce of gold held in trust. Harris believes this initiative could help those skeptical of cryptocurrency by providing a government-backed digital alternative, thereby easing their transition to decentralized assets such as Bitcoin. He emphasized that a state-issued coin could offer a "comfort level" for individuals hesitant to engage with cryptocurrencies issued by startups. Harris described the gold-backed digital currency as a "stepping stone" to Bitcoin, rather than a competitor or replacement. While supporting the gold-backed digital currency project, Harris expressed concerns about central bank digital currencies (CBDCs). He argued that a CBDC could pose significant threats, including issues related to surveillance and privacy. Harris urged the community to ensure that the government thoroughly addresses the objectives of CBDCs before considering their implementation. He highlighted the importance of having informed discussions about the potential implications of CBDCs and encouraged collaboration to prevent their adoption if they conflict with the interests of Bitcoin proponents. Harris's remarks reflect a broader skepticism towards CBDCs, which some view as potentially detrimental to both the nation and the state of Texas.