A measure that has been filed ahead of the 89th legislative session could enable Texans to use gold and silver bullion as legal tender.
House Bill 1049 by State Rep. Mark Dorazio (R-San Antonio) would invoke a frequently overlooked provision in the U.S. Constitution to permit the state comptroller to authorize the use of gold and silver as currency. Article 1 Section 10 of the U.S. Constitution states “No state shall coin money, emit bills of credit, or make any thing but gold and silver coin a tender in payment of debts.”
Historically, this provision has been used to prevent states from issuing paper money, but the clause also allows states to use gold and silver without permission from the federal government.
Texas Republican voters overwhelmingly supported a ballot measure in support of this concept last primary cycle. Ballot Proposition 7 stated: “The Texas Legislature should establish authority within the Texas State Comptroller’s office to administer access to gold and silver through the Texas Bullion Depository for use as legal tender.” It passed with 76 percent of primary voters in support.
The proposed bill would fulfill plank 32 of the current Republican Party of Texas platform, which states:
Texas should recognize the natural right to use currency of choice in the Texas Bill of Rights and provide choices for ordinary Texans to use gold and silver in everyday transactions. The State of Texas shall prohibit the use of Central Bank Digital Currencies (CBDC) for use as legal tender to conduct private and commercial transactions or to settle debts, public or private. The State of Texas does not recognize the authority of the Federal Reserve Bank or the United States Treasury to create or implement Central Bank Digital Currencies as legal tender consistent with the provisions delegated to the Federal Government under Article 1, Section 8, of the Constitution of the United States of America.
Economist Kevin Freeman, whose book “Pirate Money” outlines this concept in detail, told Texas Scorecard, “Texas has a clear chance to lead on transactional gold. There are 30 states considering this, but Texas has the advantage with our own Bullion Depository. This is a perfect step for freedom-loving Texans to protect against inflation and too much money printing.”
The Texas legislature considered a similar measure in 2023. During that session, House Bill 4903 was placed on the calendar for a vote but was later derailed from consideration in part by the impeachment of Attorney General Ken Paxton.
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