Governor’s signature on HB 1056 positions Texas as leader in monetary independence from federal system
Governor Greg Abbott signed House Bill 1056 into law late on June 22nd, making Texas the first state in the Union to establish a practical, electronic payment system backed by gold and silver. The landmark legislation recognizes precious metals as legal tender and creates a revolutionary transactional currency system that could fundamentally change how Texans conduct everyday business.
The signing represents a major victory for Texas sovereignty advocates who have long pushed for alternatives to the Federal Reserve’s fiat currency system. HB 1056 goes far beyond the symbolic precious metals legislation passed by other states, creating actual infrastructure that will allow Texans to use gold and silver for everything from buying groceries to filling up their gas tanks.
“Texas is taking back control of our money, one ounce at a time,” declared Senator Bryan Hughes (R-Mineola), the bill’s Senate sponsor. The legislation passed with strong Republican support, clearing the House 89-45 and the Senate 18-12 after amendments were made to ensure constitutional compliance.
Revolutionary Payment System
The heart of HB 1056 lies in its authorization for the Texas Comptroller to establish electronic systems that will make precious metals “functional money” for the first time in modern history. Texans will be able to deposit gold and silver in the state-run Texas Bullion Depository, then access those holdings through debit cards and mobile applications.
The system works by allowing fractional transactions backed by physical precious metals. When a Texan swipes their card at a grocery store or gas station, the system automatically converts the appropriate amount of gold or silver value to complete the purchase. This solves the practical problem that Representative Mark Dorazio (R-San Antonio), the bill’s House author, highlighted: “How am I supposed to buy groceries? How am I supposed to put gas in my car with a gold bar?”
Dorazio, who referenced Genesis 2 in his advocacy for the bill, argued that gold was intended by God for commerce and that returning to constitutional money represents both sound policy and biblical principle.
Building on Texas’s Unique Infrastructure
The legislation leverages Texas’s already-existing advantages in precious metals infrastructure. The Texas Bullion Depository in Leander, operational since 2018, currently safeguards nearly $400 million in precious metals and stands as the only state-administered bullion facility in the United States.
This gives Texas a head start that no other state can match. The 10-acre facility features the highest level of vault security, capacity for millions of ounces of precious metals, and Lloyd’s of London insurance coverage. Under the new law, this infrastructure becomes the backbone of a payment system that could revolutionize how Texans store and spend their wealth.
The depository already serves as a crucial component of Texas’s economic independence strategy, allowing Texas to repatriate gold holdings from out-of-state storage facilities and maintain direct control over the state’s precious metals assets.
Staggered Implementation Timeline
HB 1056 takes effect in phases to ensure smooth implementation. The legal tender recognition provisions become effective September 1, 2026, while the full transactional currency system will be operational by May 1, 2027.
This timeline gives the Comptroller’s office nearly two years to develop the necessary regulatory frameworks, security protocols, and vendor partnerships. The legislation specifically encourages contracting with Texas-based companies wherever possible, keeping both the jobs and the expertise within state borders.
The fiscal impact includes $5.54 million in initial costs through August 2027, followed by ongoing annual expenses of $2.77 million. Revenue generation will depend on transaction fees and adoption rates, with the system designed to become self-sustaining as more Texans embrace precious metals for daily transactions.
Opposition and Support
Despite broad legislative support that included over 70 co-sponsors, the bill faced resistance from banking interests. The Independent Bankers Association of Texas called the legislation potentially harmful to consumers and the state’s banking system, though they acknowledged the final version was significantly less problematic than earlier drafts.
Conservative organizations rallied strongly behind the measure. The Texas Public Policy Foundation’s Chuck DeVore called it “visionary legislation” during his committee testimony, while Texans for Fiscal Responsibility promoted it as common-sense protection against federal monetary manipulation.
The banking industry’s opposition reveals the threat that sound money poses to the current system of fiat currency and fractional reserve banking. When Texas provides its citizens with alternatives to Federal Reserve notes, it undermines the foundation of federal monetary control.
Federal Context and Growing Movement
Texas joins a growing movement of states pushing back against federal monetary policy. At least 11 states have introduced similar legislation, though most have focused on basic legal tender recognition rather than the comprehensive transactional infrastructure that Texas is building.
Utah pioneered precious metals legal tender legislation in 2011, followed by Oklahoma, Kansas, and other states recognizing gold and silver as constitutional money. Arkansas recently passed comprehensive legislation eliminating taxes on precious metals transactions. But Texas’s approach represents the first practical system that ordinary citizens can use for everyday commerce.
This positions Texas as the leader in monetary independence, demonstrating once again that when Washington fails to protect constitutional principles, Texas will step up and show the way forward.
Implications for Texas Independence
For supporters of Texas independence, HB 1056 represents critical infrastructure development for a future Republic of Texas. The ability to operate independent monetary systems is essential for any self-governing nation, and Texas is now building that capability while still technically part of the union.
The Federal Government has weaponized the dollar through endless money printing, crushing inflation, and using the banking system to enforce political compliance. Texas is providing its citizens with an alternative that cannot be debased by federal bureaucrats or manipulated for political purposes.
When Texans can conduct their daily business using gold and silver backed by the Texas Bullion Depository, they become less dependent on the federal monetary system and more connected to constitutional money that has maintained its value for thousands of years.
Governor Abbott’s signature on HB 1056 marks a historic moment for Texas independence and a concrete step toward the economic independence that will be necessary when Texans choose to govern themselves. The Federal Government can print unlimited dollars, but they cannot print gold and silver.
Texas has once again proven that we will not wait for Washington to protect our interests. We will forge our own path, build our own systems, and secure our own future. HB 1056 is now the law in Texas, and the age of constitutional money is about to begin.
Good Morning
Where does HB1056 leave Goldback currency? Will Texas now join the other states that have goldback notes?
Thank you for your time.
It sounds good on the surface, but what does it say for using metals as legal tender in person, rather than electronically from a custodial account? As the saying goes: If you don’t hold it, you don’t own it.