Texas Governor Greg Abbott has signed a new law officially recognising gold and silver as fiat currencies for daily financial transactions. The new law, defended by state representative Mark Dorazio and supported by the Republican Texas, shows the first major statewide effort in the United States to formally integrate precious metals into the official currency system.
Just: 🇺🇸 The Governor of Texas signs the law that makes gold and silver fiat currencies in “daily” financial transactions. pic.twitter.com/7io0nkinb5
– Watcher.Guru (@watcherguru) June 29, 2025
How will the new system work?
The new bill allows Texans to use both gold and silver coins and bullion as valid currency. The system is managed by the Secretary of State’s Office and is supported by the Texas Bullet Deposit Agency, which serves as a safe custodian for all precious metals in the program. The law also establishes a new digital currency, fully backed by the gold and silver held in depository. This metal-assisted digital currency is designed to comply with both state and federal regulations.
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This step allows Texas residents and businesses to trade using gold and silver along with traditional Fiat currency. The law fulfills the promises set out in the Texas Constitution. This supports the recognition of precious metals as currency.
Financial and regulatory implications
By implementing this alternative payment system, Texas is advocating a new level of financial autonomy, a move that will surely attract attention from other state and federal level financial regulators. The initiative aims to diversify the state’s financial environment by providing a “hard money” alternative to Fiat currency that many residents and businesses may prefer due to their intrinsic value.
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The law does not currently include cryptocurrencies, but the creation of state-backed digital currencies opens the door to future possibilities for tokenizing these precious metals into blockchains.
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