Texas has taken a bold stand for sound money. On June 29, Governor Greg Abbott signed House Bill 1056 into law, making gold and silver legal tender in the Lone Star State and setting the stage for one of the most advanced precious metals transaction systems in the country.
The legislation, which rolls out in phases beginning in September 2026, allows Texans to use gold and silver for everyday purchases through mobile apps and debit cards tied to the Texas Bullion Depository. By May 1, 2027, the system is expected to be fully operational—allowing users to swipe or tap to pay with precious metals as easily as they would with a traditional credit card.
Governor Abbott hailed the move as a return to constitutional money principles, citing Article I, Section 10 of the U.S. Constitution. “I signed a law authorizing Texans to use gold & silver as legal tender in day-to-day financial transactions,” Abbott announced on X.
A Constitutional Alternative to the Dollar
Supporters argue the law restores monetary choice in an era where inflation and central bank overreach have eroded the value of the U.S. dollar. Economist Kevin Freeman testified in favor of the bill earlier this year, noting that the dollar has lost 95% of its purchasing power over his lifetime. “Money is supposed to be a store of value, and the dollar just isn’t anymore,” Freeman said.
This sentiment echoes growing concern among conservatives and hard asset advocates who view gold and silver not just as investment vehicles, but as protection against reckless monetary policy.
The Texas law doesn’t attempt to “coin money” in defiance of federal law. Instead, it leverages existing legal tender protections for gold and silver specie, letting the free market and voluntary adoption do the rest.
How It Works: From Bullion to Burger
Under HB 1056, Texans with metal stored in the state-administered depository will soon be able to spend fractions of their holdings at the point of sale. A backend system will convert the metals into U.S. dollars instantly, while the transaction is processed like any normal debit card purchase. The merchant never has to know they were paid in gold.
Jason Cozens, founder of Glint, demonstrated this model to lawmakers. “When I paid for a flight on Delta Airlines, I paid seven grams of gold,” he said. “They had no idea I was using gold. They just accepted MasterCard.”
This frictionless system is exactly what makes Texas’s model more than symbolic. Unlike other states that simply recognize gold and silver as legal tender on paper, Texas is creating a usable infrastructure.
The Fine Print: Voluntary Use and Built-In Safeguards
The law makes it strictly voluntary for merchants to accept gold or silver, avoiding forced adoption. Qualifying metal must be clearly stamped with weight and purity—no need for sovereign minting or collectible premiums.
Additionally, the Texas Comptroller’s Office is authorized to license platforms that will manage these digital gold payments. Vendors based in Texas will be given preference in building the system, a move aimed at keeping bullion-tech jobs and economic innovation in-state.
Security rules are also part of the bill’s architecture. Transactions tied to foreign adversaries will be blocked, and anti-fraud provisions must be established before the system goes live. These guardrails are designed to ensure the system can’t be exploited by bad actors or rogue regimes.
Critics Raise Constitutional Concerns
Despite overwhelming public and legislative support—76.5% of voters backed a related ballot measure—not everyone is on board. One official from the Texas Comptroller’s office warned that implementing HB 1056 could expose state employees to legal risk, citing federal statutes that give the U.S. government sole authority over coinage and currency.
However, Rep. Mark Dorazio, the bill’s sponsor, emphasized that the system doesn’t violate any federal laws. “This bill makes gold and silver functional money,” Dorazio said, calling it a natural continuation of Texas’s past efforts, including the creation of the Texas Bullion Depository in 2015.
A Growing National Movement
Texas isn’t alone. Arkansas, Florida, and Missouri have all passed similar laws this year, building on a movement that began with Utah in 2011 and Oklahoma in 2014. But Texas’s approach stands out for its technological ambition.
While Washington debates centralized digital currencies and continues to inflate away the dollar, Texas is building a parallel system—one rooted in hard assets, limited government, and individual liberty.
With gold prices recently topping $3,300 per ounce, the timing couldn’t be more relevant. Savers are looking for a way to preserve their purchasing power—and Texas may have just given them the blueprint.
At a time when Americans are increasingly skeptical of fiat currency and centralized control, Texas is leading the charge back to sound money. Whether other states follow its lead or not, the message from Austin is clear: Gold is money. Silver is money. And freedom means having the right to use both.
Want to protect your retirement savings with physical gold and silver? Download your free Wealth Protection Guide from GoldenCrest Metals today.
