The Utah House committee has unanimously passed House Bill 306 (HB306), which aims to establish a gold and silver-backed electronic payment system for state vendors. This innovative system, proposed by Rep. Ken Ivory, would allow the state to make payments using physical gold or silver held in vault facilities within Utah. The bill requires the state treasurer to develop and implement a competitive procurement process to create, supply, and operate this precious metals-backed payment system.
If enacted, HB306 would provide vendors doing business with Utah the option to accept payments in gold or silver electronically, with the ability to redeem the electronic currency for physical metal. This measure is designed to protect vendors from the depreciation of purchasing power inherent in fiat currency. The bill builds upon Utah’s previous efforts to support sound money, including the 2011 Specie Legal Tender Act, which paved the way for the development of a gold and silver economy in the state. The passage of HB306 could potentially set the stage for state and local agencies in Utah to accept payments from residents in gold and silver, further expanding the use of sound money in the state.
