Maybe. The law would require them to purchase that amount of physical gold and store it. That gold could and should be audited. With that said, who knows what could happen one day where they either lie or refuse to be audited, like Fort Knox or the federal reserve. If the law doesn't address this, then yeah, it's flawed.
Something to note is that the Texas bill allowed to redeem the digital currency for gold.
The token they give out would not be backed by gold because they give it out before the gold is even purchased.
Maybe. The law would require them to purchase that amount of physical gold and store it. That gold could and should be audited. With that said, who knows what could happen one day where they either lie or refuse to be audited, like Fort Knox or the federal reserve. If the law doesn't address this, then yeah, it's flawed.
Something to note is that the Texas bill allowed to redeem the digital currency for gold.
It's just an electronic gold certificate. These things exist already but usually, the gold exists before you buy the certificate.