Announcing a Return to our Roots: The All-New Bitcoin Magazine

The Texas Bullion Depository Challenges the Federal Reserve System


         The Texas Bullion Depository Challenges the Federal Reserve System

In mid-June, Texas Gov. Greg Abbott signed into law HB 483, paving the way for Texas to repatriate $1 billion in gold from an underground vault in Manhattan operated by HSBC bank, bringing it home to be stored in a yet-to-be-built Texas Bullion Depository, reports HNGN, which also speculated whether this is the first step in Texas’ plan to secede. The gold is owned by the University of Texas’ endowment fund.

“Today I signed HB 483 to provide a secure facility for the State of Texas, state agencies and Texas citizens to store gold bullion and other precious metals,”Abbott said in an official statement in June. “With the passage of this bill, the Texas Bullion Depository will become the first state-level facility of its kind in the nation, increasing the security and stability of our gold reserves and keeping taxpayer funds from leaving Texas to pay for fees to store gold in facilities outside our state.”

Rep. Giovanni Capriglione, the author and sponsor of the bill, recently appeared on the Trunews talk show to speak with host Rick Wiles about what the legislation could mean for Texas.

“The really interesting part about this depository, which hasn’t been getting a lot of press,” said Capriglione as reported by Texas Observer, is that “with this depository, private individuals and entities will be able to purchase goods, and will be able to use assets in the vault the same way you’d be able to use cash.”

The Texas Bullion Depository – basically a private currency backed by gold just like old-time currencies – is, according to the show host, “the biggest threat in 102 years to the Federal Reserve System.” Capriglione agrees that it could very well make the Federal Reserve System unnecessary.

“The federal government can sue all they want, and I hope they don’t because I think they will lose,” said Capriglione in June, adding that Texas is on good solid legal ground to create the depository and operate it as stated in the bill. “There is a motto in the office of almost every state legislator in Texas, and it’s a flag that we have [from the Texas Revolution], it’s below a cannon and what the motto says is, ‘Come and Take It’,” he said.

Some observers read this story as an example of extreme anti-federal libertarianism and relate it to questionable political positions on other issues. On the other hand, as recent events in Europe show, many people throughout the world don’t trust their governments much and want to explore alternative forms of economy, including, of course, bitcoin.

In reply to a question on the possibility of “a Texas-style bitcoin,” Capriglione said “OK! That would be awesome, too. I personally own bitcoin. You could make transactions with bitcoin, use the gold depository as a medium, and then make payments on the other side.”

It isn’t clear what that means exactly. The concept of bitcoin backed by gold doesn’t seem to make too much sense, however, several alternative digital currencies that are backed in gold do exist. Instead, it seems likely that Capriglione refers to the possibility of using bitcoin to purchase gold held in the Texas Bullion Depository, and to sell the gold back for bitcoin.


Bitcoin Price Analysis: Blowing Through Support Levels on the Way to $3,000

Bitcoin continues to tumble lower and lower as it struggles to claim any footing in the market. It’s down almost 50% in three weeks and it’s showing very little sign of stopping. It’s currently clutching onto the $3,500 values but it doesn’t look like it can hold on much longer.

Bitcoin Schmitcoin

Op Ed: SEC’s Latest Declaration Creates Legal Minefield for Digital Assets

This broad, authoritative declaration is not unexpected, as, to date, the SEC has stated that all digital assets — regardless of whether they function as alt coins or utility tokens — are securities at least initially and, thus, subject to its jurisdiction.

Huhnsik Chung and Nicholas Secara

Op Ed: Cryptocurrency’s Unrealized Opportunities for U.S. Tax Professionals

Tax accountants and firms that specialize in cryptocurrency will emerge to capture and service this market. The first movers will be the ones who stand to capture the oversized profits.

David Kemmerer

Op Ed: Anatomy of the Tether Attack: Are Stablecoins Vulnerable?

Last month's attack on Tether contains a cautionary tale: Only those coins that can survive such attacks have the slightest chance of becoming the “holy grail" of stablecoins.

Henry He