(Kitco News) - Gold and silver continue to play important roles as monetary assets in global financial markets, and now the state of Utah is embracing precious metals as local currency.
On Tuesday, the state legislature passed a bill allowing government vendors to choose to be paid in gold and silver for the first time in America.
Bill HB306, now awaiting signature from Governor Spencer Cox, authorizes the state treasurer to issue a competitive procurement for a precious metals-backed electronic payment platform. This will allow state vendors to opt for payment in physical gold and silver.
Rep. Kenneth Ivory sponsored Bill HB306, and Sen. Keith Grover pushed the legislation through the Senate. The state politicians noted that the legislation is the latest evolution in Utah’s stance in favor of sound money. In 2011, Utah became the first state to recognize gold and silver as legal tender. Now, an electronic payment system will create more flexibility by fractionalizing physical silver and gold.
“In uncertain economic times, Utah is providing vendors and service providers with the option to receive payment in gold and silver,” Rep. Ivory said. “This law gives Utahns an alternative to choose how they preserve the purchasing power of their earnings and savings.”
Last year, Ivory also sponsored legislation that allowed State Treasurer Marlo Oaks to invest up to 10% of the state’s rainy-day funds in gold. Today, according to Oaks, Utah’s gold reserves have grown to $60 million as of the end of this legislative session.
Utah’s gold holdings have seen their value significantly increase as the precious metal has been on an unprecedented rally, with prices currently above $3,000 an ounce.
Utah’s new sound money legislation was the outcome of the Utah Precious Metals Study Workgroup, created last year.
“A key takeaway from the workgroup is that citizens should have a choice in how they conduct financial transactions,” said Oaks. “H.B. 306 gives state vendors the option to be paid in precious metals while ensuring the physical assets backing the system are stored in Utah and subject to regular audits. This not only supports a secure and transparent system but also takes an important step toward making transactional gold a viable option for all citizens.”
According to media reports, the working group heard from two potential vendors who offer platforms enabling gold transactions: UK-based Glint Pay, and Goldback, which is headquartered in Alpine, Utah.
