Texas House Committee Reviews House Bill 1056 for Gold and Silver as Legal Tender

During a recent meeting of the Texas Senate Committee on Finance, significant discussions centered around House Bill 1056, which proposes the use of gold and silver as legal tender in Texas. Advocates for the bill, including representatives from the Texas Public Policy Foundation and Texas Constitutional Enforcement, emphasized its potential to provide a stable alternative to the depreciating U.S. dollar, which has lost substantial value due to inflation.

Chuck Devore, a representative from the Texas Public Policy Foundation, highlighted the historical context of the bill, referencing the constitutional allowance for states to utilize precious metals as currency. He argued that establishing a medium of exchange based on gold and silver could serve as a safeguard against economic instability, particularly in the face of potential cyberattacks or natural disasters.

Supporters like economist Kevin Freeman pointed out that the bill aligns with the original intent of the Texas Bullion Depository, which was designed to facilitate transactions using gold and silver. Freeman noted that the proposal has garnered significant public support, with over 76% of Texans voting in favor of related measures in previous elections.

However, concerns were raised regarding the bill's constitutionality and its implications for the existing banking system. David Koragius, representing the Texas Credit Union Association, expressed reservations about the security measures outlined in the bill and the potential for unregulated transactions to facilitate criminal activities.

The committee ultimately decided to leave the bill pending, indicating that further discussions and considerations are necessary before any decisions are made. As Texas navigates the complexities of modernizing its currency system, the implications of House Bill 1056 could have lasting effects on the state's economic landscape and its approach to financial security.