by Alex Newman, Liberty Sentinel:
With the dollar’s decades-long decline in purchasing power accelerating in recent years, state governments across America are moving quickly to give citizens a constitutional option for both saving and commerce. Known as “transactional gold,” the idea is for state governments to create a system where gold and silver can easily be acquired, stored, used, saved, and turned back to dollars to be spent. Multiple states have already approved bills to do it, with more expected.
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Under the system, states either create or contract with a depository institution to store and manage the precious metals. In what was seen as a challenge to the Federal Reserve’s mismanagement of the U.S. currency, Texas created its own bullion depository a decade ago. The “transactional” component comes when citizens are able to obtain a mobile app or debit card-style card allowing them to spend the precious metals anywhere, anytime. Merchants can choose to be paid in dollars or metal.
Arkansas Goes First
The first state to officially get legislation signed into law creating a transactional gold system was Arkansas. On April 17, Governor Sarah Huckabee Sanders put her signature on House Bill 1918 authorizing gold and silver as legal tender for electronic payments. Building on 2023 legislation declaring the metals to be legal tender, the legislation passed with strong bipartisan support. Supporters said it aligned with the Constitution, which prohibits states from making anything other than gold or silver legal tender.
“This legislation is a game-changer for Arkansans,” said Arkansas Representative Mindy McAlindon in a statement. “While our 2023 law was a vital first step, it didn’t make gold and silver easily usable for the average person. Now, by linking gold and silver to a debit card through a secure vault system, we’ve created a free-market choice that empowers citizens to use precious metals as a hedge against inflation and a practical payment method for groceries, car repairs, or savings.”
State Senator Jim Dotson, who sponsored and carried the bill in the Senate, also emphasized the benefits of the program. “This law makes gold and silver available to everyone,” he said. “By making access to gold and silver easy to use, citizens can start with as little as 10 cents worth of gold, save securely, and spend it when needed. It’s a rainy-day fund and a currency all in one, giving Arkansans more control over their financial future.”
Florida Shines Bright
Another major state moving ahead on transactional gold is Florida. As reported by The New American on May 1, Florida lawmakers voted unanimously to approve H.B. 999 under the leadership of State Representative Doug Bankson, a Republican. “What a wonderful thing that our nation’s forefathers had the foresight to have states use gold and silver as legal tender in the Constitution,” Bankson told The Epoch Times as part of an in-depth investigative piece on transactional gold efforts.
The Florida bill, which Governor Ron DeSantis told The New American magazine’s Andrew Muller at a press conference that he would sign, establishes regulations for custodians to handle transactions involving precious metals. Now declared to be legal tender, gold and silver can officially be used as money once the law goes into effect. As Florida is a major economic powerhouse, analysts expect the bill to encourage other GOP-controlled states to move in the same direction.
Texas Depository Lead
Texas, with its state bullion depository, is already ahead of most states on bringing gold and silver back into commerce. Legislation to use the state institutions as part of a transactional gold system is moving through the legislature quickly, with strong bipartisan support. H.B. 1056 passed the House on May 2 and is now being considered by the Senate. While it has very strong grassroots support — more than three in four Republicans voted in favor of transactional gold on a ballot — Democrats have also supported it.
“Over the last 6,000 years of history, gold and silver have kept their value and served as the standard,” said Texas state Representative Mark Dorazio, the primary Republican sponsor of the bill in the House. “It is the go-to in economic crisis and instability — everyone knows you go to gold…. Everybody I talk to likes the idea of using our depository to conduct business. Plus, it would make money for the state. It’s a win-win.”
Utah Gold
Utah, a major gold producer, was the first state to get a transactional gold bill out of the legislature. Following recommendations from a state working group that investigated the matter, lawmakers voted overwhelmingly to approve the bill. It had the strong backing of Utah Treasurer Marlo Oaks, who told The New American last year that it was important for states to look at gold for stability and protection.
Representative Ken Ivory, a powerful leader in Utah politics, helped shepherd the bill through the legislature. In comments to this writer, he explained that when President Richard Nixon severed the last connection between U.S. dollars and gold, an average house in Salt Lake City could be purchased for less than $20,000, the equivalent of about 563 ounces of gold back then. An average house in the city today is over $550,000, the equivalent of about 160 ounces of gold.
Utah Governor Spencer Cox, widely seen as a liberal to moderate Republican, vetoed the overwhelmingly popular transactional gold bill in his state, arguing that it would be “impractical” to implement. He did not offer details. It remains unclear whether lawmakers will be able to override his veto. However, legislative leaders told The New American that they intend to seek an override and that they expect to succeed.
Private Sector
Despite Governor Cox’s claims that the system would be “impractical,” there are already private-sector companies such as the U.K.-based Glint that offer precisely such a system. It is used every day by people across the United States and beyond to purchase groceries and other necessities using gold. Leaders of the company have been supportive of state efforts, despite the potential for broader competition.
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