As a seasoned crypto investor with roots deeply embedded in the Lone Star State, I find the recent proposal for a gold-backed digital currency by Texas lawmaker Cody Harris intriguing and potentially game-changing. Having navigated through the volatile crypto landscape for years, I’ve come to appreciate the importance of introducing newcomers to this exciting world with caution.
A Texas legislator thinks that a proposed digital currency backed by gold could significantly contribute to the increase of cryptocurrencies being used within the state.
As an analyst, I’d rephrase it this way: On November 21st, during the North American Blockchain Summit, I, as Cody Harris – a member of the Republican Party and representing the State House of Texas – spoke about the potential creation of a token backed by gold in our state.
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).
A “stepping stone” to Bitcoin
In April 2023, Texas legislators Senator Bryan Hughes and Representative Mark Dorazi presented distinct proposals to establish a state-backed digital currency, whose value is tied to gold, on separate occasions.
According to the proposal, every token of this digital currency will symbolize a small portion of a troy ounce of gold kept securely in trust for you.
Harris proposed that the initiative might make skeptics feel more at ease about cryptocurrencies, as it provides a government-backed digital option first, and then gradually moves towards decentralized currencies such as Bitcoin.
For individuals hesitant about investing in Bitcoin or delving into cryptocurrency, a government-backed coin could offer a sense of familiarity and security, as it might seem more trustworthy than coins issued by startups, according to Harris. He further noted that this perception could be a significant factor in easing their apprehension.
“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”
During discussions about Texas’ digital currency backed by gold, Harris expressed reservations towards a digitally-based currency issued by a central bank.
As a researcher, I firmly believe that the widespread implementation of Central Bank Digital Currencies (CBDCs) could pose significant challenges not only for our nation but also for Texas, given the potential risks such as increased surveillance and privacy infringements they entail.
As an analyst, I am advocating for due diligence within our community regarding the objectives of Central Bank Digital Currencies (CBDCs) prior to their implementation. In simpler terms, let’s ensure that the government thoroughly considers and aligns the goals of CBDCs before moving forward with launching one.
“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.”
Additional reporting by Turner Wright.
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2024-11-22 14:51