Texas may have its Gold backed digital currency
Two Texas lawmakers proposed the concept of Gold pegged digital currency model.
The United States is a very big economy and the US dollar itself is a very big and powerful currency in the world but in the last couple of years, the US dollar faced huge inflation citing bad economic situation & bad financial policies. Over the last few months, many country’s Central banks proposed ideas to bypass US dollar needs in cross-border payment services.
On 10 April 2023, Two Lawmakers from the American state of Texas proposed two similar kinds of bills, and both of these bills are aimed to bring a new digital currency to Texas.
Bills noted that Digital Currency will be backed by the value of Gold. When a person will buy Gold digital currency then the issuer will buy equivalent valued Gold and vice versa.
Senator Bryan Hughes introduced Senate Bill 2334 and Mark Dorazio introduced House Bill 4903. Both of the bills asserted that the proposed currency will be backed by the fractional value of physical gold.
To overcome any critical situation, the management team or say trustee behind the digital currency shall maintain enough physical gold so that the proposed digital currency users can easily redeem their currency in Gold.
It is worth it to note that both the bills were not presented for a vote but both of these bills mentioned that the bill would come into effect by 1 Sep 2023.
American CBDC
In 2022, The United States Federal Reserve (Fed) confirmed that they are studying the Central Bank Digital Currency (CDBC), or say American CBDC, in order to maintain the dominance of the US dollar in the world.
In the past several months, it has been found that several US senators voted against CBDC and suggested keeping the CBDC idea away from the US citing risk to the financial privacy of citizens.
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