Texas Governor Greg Abbott has announced the promulgation of a law that allows Texans to use gold and silver as fiat currencies in their daily transactions.
In his publication, Abbott said the initiative was “compliant with the provisions of Article 1, Article 1 of the U.S. Constitution.”
The law establishes a legal framework for the issuance and distribution of gold and silver-supported currenciesunder the supervision of the Texas Secretary’s office.
This entity is responsible for issuing both physical and silver pieces; Currencies based on these metals that can be transferred electronically.
According to the law, the Secretary must trust “grouped deposit accounts” to protect the gold and silver reserves that support the released currency. So, Each unit represents a specific percentage of troy ions for these precious metals.
To ensure the security and trust of the new system, the law establishes specific norms aimed at protecting transactions, prevents fraud and avoids the use of funds in illegal or terrorist activities, including restrictions on the operation of countries or entities identified for these reasons.
The Secretary’s office can hire private suppliers based in Texas if possibleto take care of the issuance and management of new currency. The aim is to encourage daily use as a means of legal payments to resolve debts and transfer them in a simple way.
A fundamental aspect of the law is the obligation to maintain Fíat, explaining sufficient amounts of gold and physical silver to support all units issued by currency, ensuring that the holder can redeem the assets at any time in the corresponding physical metal or US dollars.
Similarly, the HB1056 initiative will allow users to convert assets into US dollars through the Secretary responsible for buying and selling the corresponding metals to support transactions. For this service, the committee is applied to cover operating costs and standard rates for merchants.
The measure, which comes into effect as of September 1, 2025, follows Florida steps, and last month, Gov. Ron DeSantis signed a law that approved gold and silver as legal bid coins.
The entry into the new currency, based on precious metals, into effect, is part of a broader legislative package in which Texas seeks to strengthen financial sovereignty beyond the dollar.
As reported by Cryptonotics, as of September 1, 2025, SB1498 law also begins to govern, allowing for the confiscation of cryptocurrencies used in crimes such as money laundering, fraud, and drug trafficking. The seized funds are stored in cold portfolios and once settled, they are allocated to funding for police operations.