The Utah Legislature passed the precious metals amendments bill authorizing the state treasurer to issue a competitive procurement for a precious metals-backed electronic payment platform, allowing state vendors to opt for payment in physical gold and silver.
Sponsored by Rep. Ken Ivory and carried in the Senate by Sen. Keith Grover, the bill, designated HB 306 in Utah's 2025 legislative session, passed with strong bipartisan support in both the House and Senate and now awaits the governor’s signature. This landmark move positions Utah as the first state in the nation to pass a transactional gold bill, according to a news release issued by the Utah Office of State Treasurer.
When states begin accepting something other than the national currency for payment, yeah, you gotta wonder.I wonder if that's a commentary on the outlook of the economy in the coming years?
https://www.forbes.com/sites/garthf...ice-hits-record-3000-whats-driving-the-rally/
No. No, it does not.Doesn’t exactly scream “we have confidence in the strength of US currency”, does it?
The gold would be held by the state in secure vaults. From the bill:Where is the physical gold that backs these electronic transfers?
(b)"Precious metals-backed electronic payment system" means an electronic payment
system that:
(i)uses physical gold or silver held in vault facilities within the state as backing for
electronic transactions;
Yes, I read that part. Gold is now in private hands, so I'm still not seeing how the state holding gold is any different than held privately. What difference does it make whether my gold is in a secure box at the bank or in a vault in Salt Lake?
It isn't just the state holding the gold, it's the state holding the gold combined with a platform allowing the gold to change ownership--and so be used as a medium of exchange--without ever leaving the vault. All that would change is the record of who owns it.Yes, I read that part. Gold is now in private hands, so I'm still not seeing how the state holding gold is any different than held privately. What difference does it make whether my gold is in a secure box at the bank or in a vault in Salt Lake?
So what would be the advantage economically? How does this law make sense? Why would someone choose to trade in gold rather than dollars?It isn't just the state holding the gold, it's the state holding the gold combined with a platform allowing the gold to change ownership--and so be used as a medium of exchange--without ever leaving the vault. All that would change is the record of who owns it.
Gold is a lot more inflation-resistant than dollars.So what would be the advantage economically? How does this law make sense? Why would someone choose to trade in gold rather than dollars?
Yes, which is why people hold it. Doesn't explain the purpose in using it as currency.Gold is a lot more inflation-resistant than dollars.
Because that inflation resistance extends to services and products purchased with it.Yes, which is why people hold it. Doesn't explain the purpose in using it as currency.
Yes, it can be inflation resistant over the years, but...part of the reason for that is because it usually isn't directly correlated to inflation. Plus, gold has its own market, which tends to be volatile...values go up and down fairly easily. It's really bad in terms of investments and most prefer stocks and real estates when investing. Which means...the gold market, when it decreases can take a few years to return to the previous market value.Because that inflation resistance extends to services and products purchased with it.
You're treating this as if this would be tied into the dollar economy. I don't know the details, obviously (since the details don't exist yet), but the only way I see it working is if it is a separate economy from the dollar economy. Whatever fluctuations might happen with the dollar wouldn't impact any contracts using the gold exchange.The US ditched the gold standard decades ago. Utah would have to exchange that gold and silver out for dollars to make any use of it. It's equivalent to accepting the Yen or Yuan as payment.
The only benefit this would have is allowing those with sizeable gold reserves to offload it to a third party that will inherit the volatility of gold's worth against the dollar. In this case, Utah's own government. And the poor are definitely not ones to casually carry gold with them.
You're treating this as if this would be tied into the dollar economy. I don't know the details, obviously (since the details don't exist yet), but the only way I see it working is if it is a separate economy from the dollar economy. Whatever fluctuations might happen with the dollar wouldn't impact any contracts using the gold exchange.
It fluctuates in value far more than the dollar, in a span of a year or twopeople can lose 40% or gain 40% of their US wealth if it was just in goldGold is a lot more inflation-resistant than dollars.
By encouraging people to transact with gold/silver instead of dollars, they are creating an internal economy just for themselves. Essentially, they want Utahns to only work in Utah, as there is no way to transact gold/silver elsewhere in the US.I'm at a loss to understand what the problem is that they're trying to resolve?
By encouraging people to transact with gold/silver instead of dollars, they are creating an internal economy just for themselves. Essentially, they want Utahns to only work in Utah, as there is no way to transact gold/silver elsewhere in the US.
Utah First.
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