Some Texans are voicing doubts over a new law that recognizes gold and silver as legal tender in the state and calls for the creation of a transactional currency backed by the precious metals.
Governor Greg Abbott announced on X (formerly Twitter) Sunday that he had signed House Bill 1056 into law following its approval by both chambers of the Texas Legislature. The law, which is set to take effect on May 1, 2027, amends the state government code to allow gold and silver to be used in everyday transactions, with their value determined by the state comptroller at the time of exchange.
Citing the U.S. Constitution—which says no state shall “make any thing but gold and silver coin a tender in payment of debts”—Abbott emphasized that the new law aligns with constitutional principles. However, it does not prohibit the continued use of Federal Reserve notes or other forms of U.S. currency. Importantly, the law also does not require any person or business to accept gold or silver for payments, deposits, or other purposes.
Texas, under Republican leadership and Governor Abbott, has also made legislative moves toward embracing cryptocurrency. On the same day he signed HB 1056, Abbott approved a separate bill authorizing the establishment of a strategic Bitcoin reserve for the state.
Back to Gold?
The U.S. has not operated on a gold standard for regular transactions since 1933, when President Franklin D. Roosevelt ordered citizens to surrender gold holdings to the Federal Reserve. While states like Texas have explored alternative forms of currency, the Constitution prohibits them from minting their own coins or issuing paper money.
Some analysts speculate the new Texas law could pave the way for a state-recognized digital currency backed by gold or silver. But previous efforts to pass similar legislation have faced resistance from residents, who voiced concerns about potential impacts on retailers and the practicality of using precious metals in daily commerce.
