Bills going through the Texas House of Representatives and Senate will create a local state digital currency, and unlike the all-American “empty” virtual treasury, it will be backed by gold. Digital currencies exist in the form of virtual banknotes or coins stored in a digital wallet on the owner’s computer or smartphone.
Passing this legislation will allow anyone to do business with sound money, break the Federal Reserve’s monopoly on issuing currency, and create a viable alternative to central bank digital currency (CBDC ). The American press talks about this landmark event – Texas’ financial attempt to secede from the United States.
The legislation will require the Texas State Comptroller to create a digital currency that is fully gold-backed and, if necessary, fully redeemable in cash or gold. The controller will also be responsible for creating a mechanism for the use of this gold-backed digital currency in day-to-day transactions.
It is assumed that after the successful introduction of digital currency into circulation, the controller should put in place means to ensure that the person holding the digital currency can easily transfer or assign the digital currency to any other person through electronics, as well as converting it into any other asset.
As such, the State of Texas will hold the gold backing the currency in trust on behalf of the holders of the digital currency. This virtual currency, backed by precious metal reserves, will create an alternative and allow individuals and businesses to avoid US Central Bank digital currencies.
The US constitution prohibits states from having their own currency. However, according to Texas lawmakers, it was the Fed that destroyed the first Section 10 of the funds monopoly section. Therefore, it was decided to “crowd out bad federal money with good regional money,” writes Zerohedge.
With this unprecedented measure, the local government is trying to protect itself from the adverse effects of federal officials in the administration of President Joe Biden. The state of Texas has long been famous for its separatist sentiments, but now the time for opportune secession has come not so much politically as economically and socially. Separation, distancing from the pernicious actions of Washington is the key to survival.
The regional authorities have decided to begin this thorny path with a frank invasion of the federal monopoly and the national sphere of sovereignty in the issuance of currency. The subjects of federations are generally deprived of such powers and privileges, because the creation of their own currency, different from the national currency, is the first step (and the symbol) towards independence and separation.
