Friday, 04 July 2025

Texas Becomes First State to Allow Gold, Silver as Legal Tender


Texas becomes first state to legally allow gold and silver to be used as currency.

Texas has become the first state to authorize gold and silver as legal tender, allowing residents to use precious metals in everyday transactions under a new law signed by Governor Greg Abbott. House Bill 1056, enacted to bolster financial freedom, marks a historic shift toward alternative currencies in the state.

Announced Sunday on X, Abbott celebrated the bill’s passage, stating, “I signed a law authorizing Texans to use gold & silver as legal tender in day-to-day financial transactions.” The move positions Texas as a pioneer in challenging fiat currency systems, reflecting growing distrust in traditional banking and federal monetary policies among its residents.

“It fulfills the promise of Article 1, Section 10 of the U.S. Constitution,” he added.

Infowars.com reports: Article I, Section 10 Clause 1 of the U.S. Constitution states:

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No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.

The law, which takes partial effect May 1, 2026, and goes into full effect Sept. 1, 2026, authorizes the State Comptroller’s office to establish electronic payment systems “backed by bullion” stored at the Texas Bullion Depository, though it does not require vendors accept the precious metals as payment.

Gold and silver used in transactions must also meet certain requirements, and cannot be minted by governments, but bullion from private minters like Apmex is fine.

Bill author Rep. Mark Dorazio (R-San Antonio) at one point in 2024 said the measure “makes gold and silver functional money in Texas,” adding, “It has to be functional, it has to be practical and it has to be usable.”

In 1933, in order to stop Americans from hoarding gold amid the Great Depression, President Franklin D. Roosevelt signed an executive order requiring residents to remit gold coins, bullion, and certificates back to the U.S. government in exchange for Federal Reserve notes backed by the full faith and credit of the U.S. Treasury, greasing the skids for America to be taken off the gold standard.

The move comes as Gov. Abbott last week signed a bill authorizing the creation of a Texas Strategic Bitcoin Reserve, which would hold the cryptocurrency as one of the state’s assets, with the law stating “bitcoin and other cryptocurrencies can serve as a hedge against inflation and economic volatility.”

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