TEXAS HAS OPENED ITS OWN TREASURY. WILL AMERICANS PAY WITH GOLD?

Last month saw the official opening of the Texas State Vault, the first facility of its kind in the US. Gold can be deposited there by businesses, public institutions, and all US citizens. The creation of the vault in Austin is intended to mark a shift toward greater independence from the Federal Reserve and the dollar it issues.

The idea for a state treasury emerged several years ago. The first legal step in this direction was taken back in 2015. The newly elected governor, Greg Abbott, signed the Texas Bullion Depository bill into law. In the near future, Texas authorities want to expand the treasury's offering with additional services, such as the sale or exchange of gold for other assets.

PAYING WITH GOLD

The facility is not only intended to serve as a large safe, but also as a tool for promoting gold as a medium of exchange. For this reason, the construction of the vault has been accompanied by changes in the law that allow everyday transactions to be carried out using the yellow metal. According to preliminary assumptions, depositors will be able to pay using special cards that seamlessly convert the gold deposited in the vault into currency. It is not difficult to see that this method of payment would resemble transactions using a debit card.

PERPETUAL DEPOSIT

In an interview with the local newspaper Texas Tribune, Texas Comptroller Glenn Hegar assured depositors of the highest level of security guaranteed by his institution. Hegar emphasized that anyone who deposits their gold with him can be sure that it will be stored until they decide to withdraw or sell it.

TEXAS AS AN EXAMPLE

According to Republican Giovanni Capriglione, a member of the Texas House of Representatives, one of the initiators and first depositors of the treasury, the solution introduced by Texas has the potential to become the beginning of a new standard in the US. Capriglione cites conversations with lawmakers from across the country who are voicing their desire to follow Texas's lead. In the near future, the politician expects a lot of interest in the Texas vault, which is expected to receive not only gold, but also silver, rhodium, and platinum.

* Based on "Gold Bullion Depository In Texas Officially Opened This Week," News.GoldSeek.com.