Reserve

<p><strong>The Southern state has been known to <a href="https://walletinvestor.com/magazine/texas-emerges-as-a-crypto-haven-states-bill-of-rights-may-soon-include-digital-currencies" target="_blank" rel="noopener">protect</a> its crypto companies, now it will protect its residents from government surveillance.</strong></p>
<h2 style="text-align: center;" id="texas-will-ban-cbdcs">Texas Will Ban CBDCs</h2>
<p>Texas is <a href="https://watcher.guru/news/texas-introduces-bill-to-ban-central-bank-digital-currency-cdbc" target="_blank" rel="noopener">taking steps</a> to ban the use of a central bank digital currency (CBDC) within the state. The bill, introduced by the 88th Legislature, aims to address concerns about government surveillance and control over private cash holdings and transactions.</p>
<h2 style="text-align: center;" id="cbdcs-and-government-surveillance">CBDCs and Government Surveillance</h2>
<p>CBDCs are digital forms of money that are issued by the Federal Reserve. The bill argues that retail CBDCs, which are available to the general public, create a direct relationship between the Federal Reserve and consumers. This could potentially result in unprecedented levels of government surveillance and control over individuals&#8217; financial activities.</p>
<h2 style="text-align: center;" id="opposition-to-cbdcs">Opposition to CBDCs</h2>
<p>The introduction of the bill aligns with the growing opposition to CBDCs among government officials. Florida Governor <a href="https://walletinvestor.com/magazine/florida-governor-ron-desantis-strongly-opposes-cbdcs" target="_blank" rel="noopener">Ron DeSantis</a> has already banned government-issued digital currencies within the state, and Senator Ted Cruz has expressed distrust in their implementation, citing the dangers they pose to society.</p>
<p><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-23088" src="https://walletinvestor.com/magazinadmin/wp-content/uploads/2023/05/53121304_2031200936992196_4604346658052898816_n.png" alt="" width="959" height="959" srcset="https://walletinvestor.com/magazinadmin/wp-content/uploads/2023/05/53121304_2031200936992196_4604346658052898816_n.png 959w, https://walletinvestor.com/magazinadmin/wp-content/uploads/2023/05/53121304_2031200936992196_4604346658052898816_n-300x300.png 300w, https://walletinvestor.com/magazinadmin/wp-content/uploads/2023/05/53121304_2031200936992196_4604346658052898816_n-150x150.png 150w, https://walletinvestor.com/magazinadmin/wp-content/uploads/2023/05/53121304_2031200936992196_4604346658052898816_n-768x768.png 768w" sizes="(max-width: 959px) 100vw, 959px" /></p>
<h2 style="text-align: center;" id="privacy-and-security-concerns">Privacy and Security Concerns</h2>
<p>One of the key concerns raised by the bill is the centralized collection of transaction data associated with CBDCs. This poses significant privacy and security risks, as it can make it easier for unauthorized individuals to access users&#8217; data. While there are strategies to minimize these risks, they often reduce transparency for regulators, making it more challenging to detect illicit activities such as money laundering and terrorism financing.</p>
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
<p lang="en" dir="ltr">If the EU passes this PoW ban, they will pull yet another China &amp; essentially hand Texas the keys to the kingdom 🤣</p>
<p>No self-respecting sovereign nation outside of NATO, Russia, China is going to allow themselves be DoS-attacked by EU&#39;s surveillance CBDCs or other PoS altcoins.</p>
<p>&mdash; Jason Lowery (@JasonPLowery) <a href="https://twitter.com/JasonPLowery/status/1503088674086531078?ref_src=twsrc%5Etfw">March 13, 2022</a></p></blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<h2 style="text-align: center;" id="texas-8217-alternative-approach">Texas&#8217; Alternative Approach</h2>
<p>While Texas is taking a firm stance against CBDCs, the state lawmakers have proposed an alternative solution. They are exploring the creation of a state-based digital currency backed by gold. Two identical bills have been introduced, which outline the use of a digital currency backed by a fractional equivalent amount of physical gold. The proposed digital currency would maintain its value relative to the appropriate fraction of a troy ounce of gold at the time of the transaction.</p>
<h2 style="text-align: center;" id="conclusion">Conclusion</h2>
<p>Texas&#8217; decision to introduce a bill banning CBDCs reflects the concerns about government surveillance, control, and transaction monitoring associated with these digital currencies. The ongoing debate surrounding government-issued digital currencies highlights the divided opinions among lawmakers regarding the potential benefits and drawbacks of government-controlled digital currencies. In the meantime, Texas lawmakers are also exploring alternatives, such as a state-based digital currency backed by gold.</p>

Texas Introduces Bill to Ban CBDCs

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