What You Should Know Before Using Downtown Digital Dollars

Do you represent a city or fair organizer who is considering Downtown Digital Dollars by Texitcoin (TXC)? This article is for you.

A new payment solution for towns and fairs from Texitcoin is being promoted for 2026 and it is represented by slick sales people who may not be completely forthright about all aspects of their Downtown Digital Dollar [DDD] payment solution. These are some points to know and consider.

  1. Texitcoin’s implementation of DDD undermines the entire use of cryptocurrency and blockchain technology for this application. Texitcoin is a centralized blockchain under the control of one person, Bobby Gray. In fact the entire operation and all equipment are personally controlled by this person. The project will split hairs by saying that the blockchain is “permissioned” and that is different than being centralized, but that doesn’t get around the fact that one person or entity controls the entire thing. One person (Bobby) — or whoever has his credentials — can change the software or reverse transactions or end the project at will. That is not true of a decentralized blockchain.
  2. The cryptocurrency use case typically takes advantage of a decentralized infrastructure which inherently provides superior security (no single point of failure), transparency (public ledger), censorship resistance, and user autonomy (control over assets), contrasting with centralized systems’ efficiency and streamlined control but vulnerability to hacks, censorship, and single-entity trust issues. In short, decentralized networks are more robust and trustworthy. Because DDD is centralized, any standard database and computing platform could fulfill the processing needs just as effectively. The fact that they chose to use centralized crypto and blockchain yields no real advantages. Blockchain and crypto are just being used to give an impression that this project is superior to alternative options using cards and tickets. 
  3. The Texitcoin network operates with only 2 nodes. How much redundancy and backup is there?
  4. Has the code ever been audited or reviewed?
  5. Texitcoin (and DDD) appear to lack proper legal structure and compliance. Texitcoin lacks formal legal representation and has not publicly announced any business licenses, bank charters, or money transmitting licenses. It is wise to make sure this company meets all legal requirements (See Blog).
  6. The Texitcoin project itself (the underlying technology) carries significant legal vulnerabilities and technical uncertainties as outlined in this article.
  7. Texitcoin appears to lack a proper support team. Texitcoin miners continue to report problems getting timely responses from support. Texitcoin’s website, as of the time of this publication, notes one application developer and no legal team. It is unclear if they have staffing at levels required to support an event of any decent size.
  8. Texitcoin has not explained how they will meet the support needs for your town or event while offering the service for free. Do they have enough staff to answer the phones and help people with their tech? 
  9. Texitcoin has not explained how many transactions at a time can their app support? How easy is it for it to be overwhelmed?
  10. Texitcoin has not explained how they will manage legal compliance and address KYC or AML requirements (if any).

Further Considerations

Texitcoin’s project image is based on a secessionist movement. Do you want your town or event associated with this movement?

Conclusion

Before you commit your town or event to a contract for DDD, make sure you do a thorough risk management assessment.