Bitcoin adoption could be significantly increased by the state’s proposed gold-backed coin, according to a Texas lawmaker.
On November 21, Cody Harris, a Republican Party member of the Texas State House of Representatives, discussed the creation of a gold-backed coin in Texas at the North American Blockchain Summit.
During a fireside conversation with David Duong of Coinbase, Harris contended that a state-issued gold-backed token could offer Texans an entry point to the world of digital assets, such as Bitcoin.
Gold-backed Coin may be a stepping stone to Bitcoin adoption
In April 2023, Senator Bryan Hughes and Representative Mark Dorazi, two Texas legislators, introduced two distinct bills to establish a state-issued digital currency backed by gold.
The proposal stipulates that each unit of the digital currency would be equivalent to a fraction of a troy ounce of gold held in trust.
Harris stated that the initiative could assist skeptics in gaining a greater understanding of cryptocurrency by providing a government-issued digital alternative before the transition to decentralized assets such as Bitcoin.
Harris stated that a state-issued coin would provide a “comfort level” for individuals who are extremely hesitant to invest in Bitcoin or explore cryptocurrency, in contrast to tokens issued by firms.
“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.”
Harris says CBDC is detrimental to the nation
Harris disapproved of a central bank digital currency (CBDC) while advocating for Texas’ gold-backed digital currency initiative.
At the fireside conversation, the lawmaker stated, “I believe we would all concur that a CBDC is detrimental to the nation and the state of Texas.” He alluded to the numerous potential threats associated with CBDCs, such as surveillance and privacy concerns.
Harris encouraged the community to ensure that the government adequately addresses the objectives of CBDCs before their implementation. He declared:
“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.”
