The State will manage a currency supported in metals, which can be transferred digitally.
The measure will enter into force as of September 1.
The Governor of Texas, Greg Abbott, announced the promulgation of a law that authorizes Texans to use gold and silver as legal tender in their daily transactions.
In one publicationAbbott said that this initiative “complies with the provisions of article 1, Section 10 of the Constitution of the United States”, which allows states to issue their own currency backed in precious metals.
The law establishes a legal framework for the issuance and circulation of currency backed in gold and silverunder the supervision of the Texas Comptroller’s office.
This entity will be responsible for issuing both physical and silver pieces and a currency based on these metals that can be transferred electronically.
According to the legislationthe comptroller must keep a “grouped deposit account” in trust to guard the gold and silver reserves that support the emitted currency. So, Each unit will represent a certain fraction of a Troy ounce of these precious metals.
To guarantee security and confidence in the new system, the law establishes specific norms aimed at protecting transactions, prevent fraud and avoid the use of funds in illegal or terrorist activities, including restrictions on operations with countries or entities identified by these reasons.
The Comptroller’s Office will be able to hire private suppliers, preferably based in Texasto take care of the issuance and administration of the new currency. The objective is that users can use it as a means of legal payment to settle debts and transfer it in a simple way, thus promoting their use in daily life.
A fundamental aspect of the law is the obligation to keep in the FÍAT account a sufficient amount of gold and physical silver that supports all the units issued by the currency, guaranteeing that the holders can, at any time, redeem their assets for the corresponding physical metal or by US dollars.
Likewise, the HB1056 initiative will allow users to convert their assets into US dollars through the comptroller, who will be responsible for buying or selling the corresponding metal to support the transaction. For this service, a commission will be applied to cover operating costs and a standard rate for merchants.
This measure will enter into force as of September 1, 2025.
The entry into force of this new currency based on precious metals is part of a broader legislative package with which Texas seeks to strengthen its financial sovereignty.
As Cryptonotics reported, as of September 1, 2025, the SB1498 law will also begin to govern, authorizing the confiscation of cryptocurrencies used in crimes such as money laundering, scams or drug trafficking. The seized funds will be stored in cold portfolios and, once liquidated, they will be allocated to the financing of police operations.
