AUSTIN (KXAN) — Texas has joined a growing movement of states establishing gold and silver currency systems, after Gov. Greg Abbott signed House Bill 1056 into law on June 29, creating what supporters call the most comprehensive precious metals transaction framework in the nation.
The legislation allows Texans to use precious metals stored in the state-run Texas Bullion Depository for every day purchases through debit cards and mobile applications, positioning Texas alongside Arkansas, Florida, and Missouri as states advancing precious metals currency legislation this year.
“I signed a law authorizing Texans to use gold & silver as legal tender in day-to-day financial transactions,” Abbott announced via X. “It fulfills the promise of Article 1, Section 10 of the U.S. Constitution.”
The law, which takes effect in phases beginning September 2026, enables the Texas Comptroller to establish electronic systems that convert gold and silver holdings into U.S dollars at the point of sale. The full transactional currency system will be operational by May 1, 2027.
During legislative hearings in March, supporters framed the measure as protection against inflation and a return to constitutional money principles.
“Money is three things, according to the Federal Reserve, it’s a unit of account, it’s a means of exchange, and it’s a store of value,” testified Kevin Freeman, an economist and author. “U.S. dollars are very good at one and two. They’re good units of account and means of exchange, but a store of value, the dollar’s lost, based on inflation statistics, 95% of its value in my lifetime.”
Freeman cited strong public support, noting that Texas Proposition 7 received backing from “1.6 million voters. 76 and a half percent voted in favor of this, this type of transaction.”
Jason Cozens, founder of Glint, a company already operating gold-backed payment cards, demonstrated the technology’s feasibility during committee testimony.
“When I paid for instance, on Delta Airlines, I paid for my flight, I paid seven grams of gold. They had no idea that I was paying with gold,” Cozens told lawmakers. “The governor’s club in Tallahassee, dinner for a few of us, cost 1.9 grams of gold. They just accept MasterCard. They have no idea that I’m paying with gold.”
Cozens emphasized that merchants face no additional costs or system changes, as the technology operates through existing MasterCard networks.
However, there are concerns the law could face constitutional challenges. During a hearing for the bill, Victoria North, representing the Texas Comptroller’s office, warned that implementing HB 1056 could expose state employees to criminal liability due to conflicts with federal currency laws.
