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A Texas lawmaker believes the state’s proposed gold-backed digital currency could play a key role in boosting cryptocurrency adoption.
Cody Harris, a Republican Party member of the Texas State House of Representatives, addressed the development of a gold-backed token in Texas at the North American Blockchain Summit on Nov. 21.
In a fireside chat with Coinbase’s David Duong, Harris argued that a state-issued gold-backed token could serve as a gateway for Texans to explore digital assets like Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow" target="_self" text="null" title="https://cointelegraph.com/bitcoin-price">BTC</a>).
<h2 id="a-stepping-stone-to-bitcoin">A “stepping stone” to Bitcoin</h2>
Two Texas lawmakers, Senator Bryan Hughes and Representative Mark Dorazi, introduced two separate bills for creating a <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/texas-gold-backed-digital-currency-project-law-decoded-april-3-10" rel="noopener noreferrer nofollow" target="null" text="null" title="null">state-issued digital currency backed by gold</a> in April 2023.
Under the plan, each unit of the digital currency would represent a fraction of a troy ounce of gold held in trust.
Harris said the initiative could help skeptics become more comfortable with cryptocurrency by offering a government-issued digital alternative before transitioning to decentralized assets like Bitcoin.
<figure><img alt="Education, Gold, Texas, Tokens" src="https://s3.cointelegraph.com/uploads/2024-11/01935397-b375-7bd7-a3b1-e9e90dcaf055" title="">
 <figcaption style="text-align: center;">
 Cody Harris (right) and Coinbase’s David Duong at the North American Blockchain Summit. Source: Cointelegraph
 </figcaption>
</figure>
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/senator-lummis-says-treasury-should-convert-gold-bitcoin-reserve" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Senator Lummis says Treasury should convert gold for Bitcoin reserve</a>
For those who are very reluctant to enter into owning Bitcoin or exploring cryptocurrency, a state-issued coin would give them somewhat of a “comfort level” compared to tokens issued by startups, Harris said, adding:
<blockquote>
 “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.”
</blockquote>
<h2 id="cbdc-is-detrimental-to-the-nation">“CBDC is detrimental to the nation”</h2>
While encouraging Texas’ gold-backed digital currency project, Harris spoke unfavorably of a <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/articles/what-are-cbdcs-a-beginners-guide-to-central-bank-digital-currencies" rel="noopener noreferrer nofollow" target="_self" text="null" title="https://cointelegraph.com/learn/articles/what-are-cbdcs-a-beginners-guide-to-central-bank-digital-currencies">central bank digital currency (CBDC</a>).
“I think we would all agree that a CBDC is detrimental to the nation and the state of Texas,” the lawmaker said at the fireside chat, referring to many potential threats associated with CBDCs, including <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/articles/privacy-issues-of-central-bank-digital-currencies-cbdc" rel="noopener noreferrer nofollow" target="null" text="null" title="null">surveillance and privacy concerns</a>.
Harris urged the community to make sure that the government properly addresses the goals of CBDCs before launching one. He stated:
<blockquote>
 “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.”
</blockquote>
Additional reporting by Turner Wright.
 Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/bitcoin-dominance-crypto-predictions-bull-run-benjamin-cowen-hall-of-flame/" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Bitcoin dominance will fall in 2025: Benjamin Cowen, X Hall of Flame</a>

Texas’ gold-backed coin aims to help Bitcoin adoption, says lawmaker

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