Next Gen Money, Part 1: Texas Re-Imagines The Dollar
Digital currency might be a good thing in the right hands...
With all the (completely justified) angst surrounding central bank digital currencies (CBDCs), it’s easy to forget that the concept of digital money isn’t the problem. It’s just a tool like any other and can be used for good or evil, depending on who’s wielding it.
Obviously, if a CBDC is managed by some combination of the Federal Reserve, the military-industrial complex, the intelligence community, and Big Pharma, that currency will be a mechanism of state control and should be avoided at all costs. But if it’s backed by gold or silver and run transparently by people who respect their citizens’ privacy and agency, then it’s potentially part of a brighter monetary future.
This brings us to Texas Senate Bill 2334, which calls for the introduction of a state-run digital currency, backed by gold and/or silver, accepted as legal tender within the state and available to people living anywhere in the world.
Texas is a logical first mover since in the 2010s it opened a state gold depository where citizens could safely store their bullion. Think of it as Texas’ Fort Knox. This depository gives the state a physical starting point for establishing a gold-backed currency.
From the Epoch Times:
How a gold standard works
To make sure we’re all on the same conceptual page, a gold standard is a monetary system in which the circulating currency is backed by gold stored in a government vault. Gold and currency are convertible into each other at the discretion of their owners, which prevents the government from creating too much currency. And that’s it. No half-wit Ivy League economists rewarding their future hedge fund employers with artificially-low interest rates. No reporters asking repetitive softball questions of the aforementioned economists, and no money managers building careers on predicting what irrational thing the Fed will do next.
The central bank becomes not much more than a bank teller window, exchanging gold for cash and cash for gold. Money becomes part of the environment, a stable thing that no one worries about, rather than a tool the authorities use to manipulate markets. The rich lose the ability to game the system by buying politicians and Fed governors, so economic inequality is less of an issue. In short, the good effects of a gold standard far outweigh the bad.
Some other possible effects of Texas starting its own gold-backed currency:
It’s way too early for predictions, but the best-case scenarios for state-based gold-backed digital currencies are exciting. In any event, it’s nice to be able to report some positive monetary news for a change.
James Hickman (aka Simon Black) is an international investor, entrepreneur, and founder of Sovereign Man. His free daily e-letter Notes from the Field is about using the experiences from his life and travels to help you achieve more freedom, make more money, keep more of it, and protect it all from bankrupt governments.
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