Gold as money in the US

Tired of the relentless decline in the purchasing power of the US Dollar, and alarmed about the apparently unstoppable rise of America's Central Bank Digital Currency (CBDC), legislators in the state of Texas have introduced Bills that would require the state comptroller to establish a digital currency that is fully backed by gold. The comptroller's office has a wide remit. It collects more than 60 state taxes as well as the local sales tax. It also issues permits and other licenses, and audits state tax returns. The state of Texas would hold the gold backing the digital currency; individuals would be able to purchase the digital currency from the state, and the state would then use the money to buy gold that would be held in the Texas Bullion Depository.

If the Bills became law - though they are far from that as yet - it would undermine the US Federal Reserve's monopoly on money and provide an alternative to a CBDC. Legislators from other states have in the recent past proposed Bills to introduce their own currency. The Constitution bans states from printing their own paper money or issuing their own currency. But it also states that "No State shall make any thing but gold and silver Coin a Tender in Payment of Debts." In early 2011 Utah passed legislation making gold and silver coins legal tender, paving the way for other states to pursue similar legislation.

The move in Texas has obviously stimulated fresh debate about a possible return to the gold standard, which finally ended in the US in 1971 under President Nixon. Even Donald Trump, thought to be a fan of gold and of tying the Dollar to gold, has admitted that it would be extremely complicated to go back to the gold standard. China and Russia, both members of the BRICS alliance of countries, have been accumulating gold recently. There has been speculation that the BRICS might launch a new gold-backed currency for international trade. Of course, Glint gives the opportunity for everyone to use gold as money, to have their own individual gold standard.

Glint gives the opportunity for everyone to use gold as money, to have their own individual gold standard.

At Glint, we make every effort to demonstrate a balanced conversation between gold, crypto and fiat currencies when it comes to purchasing power and, while we strongly believe that gold is the fairest and most reliable currency on the planet, we need to point out that it isn’t 100% risk free. While we have seen a steady increase over time, the value of gold can fall, which means that its purchasing power can also decline.