Senate Bill 112 (SF112), introduced in the Iowa Senate, seeks to establish a gold and silver-backed currency system, providing Iowans with an alternative to Federal Reserve notes. Sponsored by Rep. Kevin Alons and other legislators, the bill mandates the state treasurer to issue specie-backed transactional currency tied to physical gold and silver. This currency would be fully backed by bullion stored in approved depositories, such as a state-run bullion facility or the Texas Bullion Depository.
The bill also allows for electronic transactions using this currency, ensuring that individuals and businesses can conduct trade with sound money alternatives. By implementing this system, Iowa aims to offer protection against inflation and the devaluation of paper money. Supporters argue the bill aligns with the U.S. Constitution, which specifies that states shall only recognize gold and silver as legal tender. Additionally, the legislation could reduce dependence on Federal Reserve-issued fiat currency, challenging its monopoly on money supply.
If passed, the bill could set a precedent for other states to adopt similar sound money policies. The proposal has been referred to the Senate State Government Committee, where it awaits further debate and consideration. If approved, Iowa would become one of the first states to create an official gold and silver transactional currency system.
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