Texans to Use Gold and Silver in Daily Transactions from May 2027
Texans will be able to spend tablets of gold and silver after May 1, 2027, thanks to a landmark law enacted by Texas Governor Greg Abbott. The Lone Star State’s HB 1056 was signed into law recently and allows Texans to use gold and silver to make daily transactions.
The law doesn’t eliminate the U.S. dollar or any other federal currency, but it allows gold and silver to be valued based on the market price as determined by the Texas Comptroller.
A newly signed bill changes the financial code of the state. This will allow Texans—not require them—to use gold or silver for both personal and commercial transactions. Businesses are not legally required to accept precious metals, nor does it preempt federal law concerning legal tender.
Constitutional Roots and Modern Implementation
Governor Abbott cited the U.S. Constitution, referencing the clause: “No state shall make anything but gold and silver coin a tender in payment of debts.” The United States officially left the gold standard in 1933.
Since 1933, the country has operated without gold backing its currency. Texas’ legislation serves as a modern nod to sound money principles while exploring new financial innovation.
In addition to the gold and silver law, Governor Abbott also signed off on a proposal to establish a Bitcoin reserve for the state of Texas—signaling broader ambitions for alternative assets in public finance.
Practical Concerns and Public Reactions
Although the move is bold, many question its practicality. Critics have raised concerns about the risk of counterfeit coins and the difficulty small businesses might face in verifying the authenticity of precious metals.
One Reddit user pointed out the challenges for shop owners in determining whether a coin is real gold or a fake. As a result, ordinary transactions could become more complex.
Importantly, the law does not mandate anyone to accept gold or silver. Businesses and individuals are free to choose whether to accept these precious metals as payment.
A Broader Trend Toward Currency Alternatives
Texas is not alone in its interest in alternative forms of money. Several U.S. states have declared gold and silver legal tender, but few have implemented practical mechanisms for everyday use.
Some businesses already accept Goldbacks, a private currency embedded with real gold, used for small transactions. However, these are not officially backed by any state or federal agency.
Texas’ move to legally recognize precious metals as currency could motivate similar legislation in other states—especially those seeking to challenge or distance themselves from federal monetary policy.
Texas Leads in Financial Innovation
By allowing both crypto assets and traditional hard assets like gold and silver to be used in commerce, Texas is positioning itself at the forefront of financial innovation.
The true effect of this policy will depend on the public’s willingness to participate. As it stands, Texans are sending a powerful message: the future of money may involve more than paper or pixels—it could also shine with gold and silver.
