Texas’ Gold-Backed Coin Aims To Help Bitcoin Adoption, Lawmaker Says

Authored by Helen Partz via CoinTelegraph.com,

A Texas lawmaker believes the state’s proposed gold-backed digital currency could play a key role in boosting cryptocurrency adoption.

Cody Harris, a Republican Party member of the Texas State House of Representatives, addressed the development of a gold-backed token in Texas at the North American Blockchain Summit on Nov. 21.

In a fireside chat with Coinbase’s David Duong, Harris argued that a state-issued gold-backed token could serve as a gateway for Texans to explore digital assets like Bitcoin BTC$97,519.

A “stepping stone” to Bitcoin

Two Texas lawmakers, Senator Bryan Hughes and Representative Mark Dorazi, introduced two separate bills for creating a state-issued digital currency backed by gold in April 2023.

Under the plan, each unit of the digital currency would represent a fraction of a troy ounce of gold held in trust.

Harris said the initiative could help skeptics become more comfortable with cryptocurrency by offering a government-issued digital alternative before transitioning to decentralized assets like Bitcoin.

Cody Harris (right) and Coinbase’s David Duong at the North American Blockchain Summit. Source: Cointelegraph

For those who are very reluctant to enter into owning Bitcoin or exploring cryptocurrency, a state-issued coin would give them somewhat of a “comfort level” compared to tokens issued by startups, Harris said, adding:

“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 detrimental to the nation”

While encouraging Texas’ gold-backed digital currency project, Harris spoke unfavorably of a central bank digital currency (CBDC).

“I think we would all agree that a CBDC is detrimental to the nation and the state of Texas,” the lawmaker said at the fireside chat, referring to many potential threats associated with CBDCs, including surveillance and privacy concerns.

Harris urged the community to make sure that the government properly addresses the goals of CBDCs before launching one. He stated:

“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.”