A Texas gold revolution is underway, but does the conversion of gold into digital currency just hand control over to the state? – NaturalNews.com

Governor Greg Abbott’s signing of House Bill 1056 marks a historic shift in monetary policy, positioning Texas as the first state to create a functional electronic payment system backed by gold and silver. Proponents hail it as a bold step toward financial sovereignty, freeing Texans from the Federal Reserve’s inflationary fiat system. But beneath the triumphant rhetoric lies a critical question: Is this true monetary freedom, or a clever Trojan horse that ultimately surrenders private gold reserves to state control?

The bill’s passage comes as Texas aggressively positions itself as a future economic powerhouse, investing heavily in AI, robotics, and space exploration while leveraging its vast natural resources. But with great power comes great scrutiny and skepticism. While the state frames HB 1056 as a victory for constitutional money, it may be the first step toward centralized control over citizens’ precious metals, converting hard assets into digital credits under government oversight.

Key points:

• Texas becomes the first state to implement a practical gold-backed payment system, allowing citizens to spend precious metals via debit cards and mobile apps.
• The Texas Bullion Depository — already holding $400 million in metals — will serve as the backbone of this system, raising concerns about state custody of private assets.
• Supporters claim it’s a biblical and constitutional return to sound money, while banking interests warn of consumer risks and systemic disruption.
• Implementation will be phased, with full functionality expected by 2027 — unless competing bills (SB 665, HB 1049) alter the landscape.
• The move aligns with Texas’ broader push for economic independence, fueling speculation about eventual secession.

The gold standard rebooted — or a digital trap?

At first glance, HB 1056 seems revolutionary. Texans can now deposit gold or silver into the state-run depository and access its value electronically, bypassing the need to sell metals for depreciating dollars. “How am I supposed to buy groceries with a gold bar?” asked Rep. Mark Dorazio (R-San Antonio), the bill’s architect. His solution: Convert bullion into spendable digital currency, backed ounce-for-ounce by physical metal.

But here’s the catch: The state holds the gold. Citizens trade direct ownership for digital claims — a system critics compare to central bank digital currencies (CBDCs), where governments, not individuals, control the underlying assets. While the plan appears to restore sound money and allow individuals to tap into their stores of wealth, the plan really represents another form of state-managed money. Once metals enter the depository, reclaiming them in physical form could become bureaucratically difficult.

Historically, gold’s value lies in its independence from government manipulation. The Federal Reserve can’t print it; inflation can’t erode it. But if Texans surrender their bullion to a state-run digital system, they exchange that autonomy for convenience — a trade-off that could leave them vulnerable to future policy shifts.

Banking backlash and biblical motives

The banking industry fiercely opposed HB 1056, fearing disruption to the fractional reserve system that profits from fiat currency. The Independent Bankers Association of Texas called the bill “potentially harmful,” though softened its stance after amendments. Meanwhile, conservative groups like the Texas Public Policy Foundation championed it as a “visionary” check on federal overreach.

Dorazio framed the bill in spiritual terms, citing Genesis 2: “Gold was God’s chosen medium of commerce.” Yet biblical commerce never involved handing gold to a state depository for digital credits. The tension highlights a paradox: Is this true monetary freedom, or a state-facilitated system that could — intentionally or not — centralize control over precious metals?

Texas’ move didn’t happen in a vacuum. With states like Utah and Arkansas already recognizing gold as legal tender, Texas has gone further by building infrastructure — a step that dovetails with its broader independence ambitions. The Texas Bullion Depository, opened in 2018, was initially billed as a way to repatriate state gold from New York and London. Now, it’s morphing into a monetary hub for citizens to turn in their precious resources.

For secession advocates, this is critical. A future Republic of Texas would need its own currency, and HB 1056 lays the groundwork. But at what cost? If Texans grow reliant on digital gold credits, the state gains leverage over their wealth — a scenario that could mirror the Federal Reserve’s control, just with a different master.

Freedom or façade?

HB 1056 is undeniably groundbreaking, offering Texans a hedge against inflation and federal monetary abuse. But the fine print matters. Converting physical gold into state-managed digital currency may solve short-term usability issues while creating long-term dependency. True monetary freedom requires direct ownership and spendability — not a system where the state acts as middleman. In the end, is this a plan to slowly confiscate gold and other precious metals, centralizing control?

As Texas charges toward a tech-driven future, citizens must ask: Are we reclaiming our money, or surrendering it to a new kind of centralization? The answer will shape not just Texas’ economy, but the very definition of financial liberty.

Sources include:

TexianPartisan.com

DallasNews.com

TexianPartisan.com