In mid-June, Texas Gov. Greg Abbott signed into law HB 483, leading the way for Texas to repatriate $ 1 billion in gold from an underground vault in Manhattan run by HSBC bank, bringing it the home of be kept in a yet-to-be-built Texas Bullion Depository, reports HNGN, which also hypothesized whether this is the initial step in Texas’ plan to withdraw. The gold is owned by the University of Texas’ endowment fund.
“Today I signed HB 483 to offer a secure center for the State of Texas, state firms and Texas residents to store gold bullion and other valuable metals,” Abbott said in an official statement in June. “With the passage of this bill, the Texas Bullion Depository will end up being the first state-level center of its kind in the country, enhancing the security and stability of our gold reserves and keeping taxpayer funds from leaving Texas to pay for costs to keep gold in centers outside our state.”
Rep. Giovanni Capriglione, the author and sponsor of the expense, recently appeared on the Trunews talk show to consult with host Rick Wiles about exactly what the legislation could mean for Texas.
“The really fascinating part about this depository, which hasn’t been getting a great deal of press,” stated Capriglione as reported by Texas Onlooker, is that “with this depository, private people and entities will be able to purchase products, and will certainly have the ability to utilize assets in the vault the same method you ‘d have the ability to make use of cash.”
The Texas Bullion Depository– generally a personal currency backed by gold much like old-time currencies– is, according to the show host, “the biggest hazard in 102 years to the Federal Reserve System.” Capriglione agrees that it could extremely well make the Federal Reserve System unnecessary.
“The federal government can take legal action against all they desire, and I hope they don’t because I think they will certainly lose,” said Capriglione in June, including that Texas is on excellent strong legal ground to produce the depository and operate it as stated in the costs. “There is a slogan in the office of virtually every state lawmaker in Texas, and it’s a flag that we have [from the Texas Revolution], it’s listed below a cannon and what the motto says is, ‘Come and Take It’,” he stated.
Some onlookers read this story as an example of severe anti-federal libertarianism and relate it to doubtful political positions on other problems. On the other hand, as recent events in Europe program, many individuals throughout the world do not trust their governments much and wish to explore alternative types of economy, consisting of, naturally, bitcoin.
In reply to a question on the possibility of “a Texas-style bitcoin,” Capriglione stated “OK! That would be amazing, too. I personally possess bitcoin. You might make transactions with bitcoin, make use of the gold depository as a medium, and then pay on the other side.”
It isn’t clear exactly what that suggests precisely. The idea of bitcoin backed by gold doesn’t appear to make excessive sense, nevertheless, numerous alternative digital currencies that are backed in gold do exist. Instead, it seems most likely that Capriglione describes the possibility of utilizing bitcoin to buy gold kept in the Texas Bullion Depository, and to sell the gold back for bitcoin.
The post The Texas Bullion Depository Challenges the Federal Reserve System appeared initially on Bitcoin Magazine.