With Texit gaining momentum, and the push for Texas independence becoming more inevitable by the day, a pressing question arises: What Texas have its own currency? The ability to issue and manage a national currency is one of the most fundamental aspects of sovereignty, and for many Texans, this question is at the heart of concerns about life after Texit.
The good news for Texans is that the state is already far better equipped to establish its own currency than many critics would have them believe. Through its existing financial institutions, economic stability, and substantial natural resources, Texas has the necessary building blocks to launch a fully independent currency system. In this article, we’ll break down what’s required for a nation to launch its own currency, where Texas currently stands, and what steps would be needed to close any remaining gaps.
What It Takes to Launch a National Currency
Establishing a national currency is no small feat, but it is a well-trodden path that numerous countries have navigated throughout history. According to experts, there are several key steps involved in launching a national currency:
- Economic and Political Stability: A stable political environment and a strong economy are crucial. Nations need to demonstrate fiscal responsibility and have a robust legal system in place to manage monetary policy.
- Central Banking: The overwhelming majority of nation-states have a central bank to issue and regulate their currency. The central bank manages monetary policy, controls inflation, and stabilizes the currency in both domestic and international markets.
- Currency Design and Production: The government must design and produce the physical currency, complete with security features to prevent counterfeiting.
- Legal Framework: Legislation must be passed to declare the new currency legal tender. Additionally, financial contracts and obligations must be converted from the old currency to the new one.
- Currency Distribution: A plan for distributing the new currency must be developed, ensuring that banks and businesses can seamlessly transition to the new system.
- Foreign Exchange and Trade: The new currency must be integrated into the global financial system, and the country must establish foreign exchange reserves to maintain the currency’s stability.
- Public Education: A national effort to educate citizens and businesses on how to use the new currency is critical for a smooth transition.
What Texas Already Has in Place
Texas is not starting from scratch in the process of launching its own currency. In fact, the state already has many of the critical components necessary for currency issuance, putting it ahead of most nations that have undergone similar transitions. Here are the key advantages that Texas brings to the table:
A Strong Economic Foundation
Texas has the 8th largest economy in the world, with a GDP of $2.1 trillion, surpassing countries like Canada, South Korea, and Australia. This economic clout gives Texas the stability needed to support its own currency. Moreover, the state’s economy is diversified across energy, technology, agriculture, and manufacturing. This diversification helps protect the Texas economy from the volatility of global markets, making it an ideal candidate for launching a new currency.
The Texas Bullion Depository: Backing the Currency with Gold
A significant advantage Texas holds is the Texas Bullion Depository (TxBD). This state-run facility in Leander stores vast amounts of precious metals, including gold and silver, providing Texas with the ability to back its currency with tangible assets. The TxBD holds the potential to offer a level of financial security rarely seen in modern fiat currencies. This could immediately instill confidence in the Texas Dollar (TXD), both domestically and internationally.
In the words of Texas Comptroller Glenn Hegar, “The Texas Bullion Depository is the only one of its kind in the United States, giving Texans a safe place to store precious metals with a level of trust and security.” If Texas chooses to back its currency with gold, the state can provide the market with the assurance that its new currency has intrinsic value.
The Texas Treasury Safekeeping Trust Company (TTSTC)
Managing a currency requires a central financial institution with the expertise to oversee large sums of money and execute monetary policy. Texas already has this in place with the Texas Treasury Safekeeping Trust Company (TTSTC), which manages over $125 billion in public funds.
The TTSTC could be adapted to function as the Bank of Texas, the central bank responsible for issuing and regulating the Texas Dollar. The experience that the TTSTC brings in managing vast portfolios and investments provides a strong foundation for the institution to take on the role of a central bank.
Banking Infrastructure in Place
Texas boasts a network of over 200 state-chartered banks, along with a robust regulatory framework provided by the Texas Department of Banking. These institutions already regulate financial operations and are well-versed in managing the kinds of transitions that will be necessary after Texit. National banks operating within Texas will need to comply with the new regulatory framework, but this can be achieved through a relatively straightforward conversion process.
What Still Needs to Be Done
While Texas is well-prepared in many areas, there are still steps that need to be taken to ensure a seamless transition to the Texas Dollar.
Establishing a Central Bank
The Bank of Texas will need to be formally established to take over the role of the central bank. This institution will not only issue the currency but also be responsible for setting interest rates, managing inflation, and ensuring economic stability. While the TTSTC provides a strong foundation, its mandate will need to be expanded to cover the full range of central banking responsibilities.
This transition may take time, but there are historical precedents that Texas can follow. For example, when the Czech Republic split from Slovakia in 1993, the establishment of a central bank and the issuance of a new currency (the Czech koruna) was achieved within a few months. Texas could feasibly follow a similar timeline, especially given its pre-existing financial infrastructure.
Developing the Texas Dollar
The design and production of the Texas Dollar will require collaboration with international currency printers such as De La Rue or Crane Currency, both of which have extensive experience in producing secure, high-quality banknotes. The security features must be state-of-the-art, including holographic strips, watermarks, and other anti-counterfeiting measures to ensure the integrity of the currency.
Texas could also consider launching a digital currency, leveraging its existing expertise in cryptocurrency legislation and blockchain technology. The Texas Department of Banking has already begun laying the groundwork for virtual currencies, which could be integrated into the state’s financial system to modernize its economy.
Setting Up Foreign Exchange Reserves
Once the Texas Dollar is issued, the state will need to establish foreign exchange reserves to stabilize the currency in global markets. This could include a mix of major global currencies such as the euro, yen, and U.S. dollar. The reserves would act as a buffer to ensure the stability of the Texas Dollar, particularly during the early stages of its introduction. Texas would also need to negotiate international trade agreements to facilitate the acceptance of the Texas Dollar in global markets.
Legal Framework and Contract Conversion
The Texas Legislature will need to pass laws designating the Texas Dollar as the official legal tender for the Republic of Texas. This will include creating provisions for the conversion of existing contracts and liabilities, which are currently denominated in U.S. dollars, into the new currency.
The transition would likely follow a dual-currency model, where both U.S. dollars and Texas Dollars are accepted for a set period. Over time, the Texas Dollar would fully replace the U.S. dollar as the official currency of Texas, ensuring a smooth and gradual transition for businesses and consumers.
Texas is More Ready Than You Think
For those who doubt Texas’s readiness for independence, the facts speak for themselves. Texas already possesses many of the critical components necessary for launching its own currency, from the Texas Bullion Depository and Treasury Safekeeping Trust Company to a well-established banking system. While there are challenges ahead, the infrastructure is in place, and the gaps that remain can be easily closed with careful planning and decisive action.
The truth is, Texas is far more suited for independence than many might think. By leveraging its vast natural resources, strong economy, and robust financial institutions, Texas can confidently move forward in issuing the Texas Dollar, securing its place as a truly independent nation.
The question of what Texas will do for a currency after Texit is one that has been carefully considered by the movement’s leaders. Texas is already well-positioned to make the transition to an independent currency, thanks to its financial institutions, natural resources, and legislative readiness. By addressing the remaining gaps, Texas will be able to launch the Texas Dollar with confidence, ensuring economic stability and growth in the post-Texit era.
For Texas, independence is not just a dream—it’s a plan. And that plan includes a currency that Texans can be proud of.
