ALERT: HB438 MOVE OUT OF COMMITTEE (CLICK HERE FOR MORE)
LEGISLATION FILED BY REP. KEN IVORY- HB438 (CLICK HERE FOR MORE)
HB0348 SIGNED BY GOVERNOR COX
Ken Ivory, Chief Sponsor of HB 348, is a major step forward in Utah’s ability to have Transactional Gold and Silver (Click Here for More)
- Then when you go to a restaurant, use a debit card to pay for your meal in gold, rather than fiat (Federal Reserve Notes) money.
- It sounds like science fiction, but it is available today through commercial applications like Gold Debit Cards, but the gold is typically held in Switzerland.
- Having a state-based gold and silver account comes with the benefits being legal tender.
In Texas for example there is an existing Bullion Depository together with existing commercial applications, you get gold-based, state-backed, constitutional money that works in a modern economy! This could be done in your state by working with Texas or creating their depository system.
It is NOT CBDC (Central Bank Digital Currency) with all the possible privacy and control concerns. It is not at risk from attacks on the American dollar by Russia, China, the BRICS nations, or others.
It is a place for everyday Americans to protect their finances!
Combine existing technology with US Constitution Article 1, Section 10 and you have what we call Transactional Gold – a debit card with full electronic features like Apple Pay or Samsung Pay but issued by a state. The dollar has lost two-thirds of its value in the last 40 years. Now, the dollar is a strong currency compared to the other currencies in the world. But that’s honestly terrible.
Why is this important?
Gold and silver have been a stable source of currency for centuries. They are the fairest form of money. Inflation is hurting many these days, and they are looking for solutions. This is the answer. This is your opportunity to help bring Wall Street-level diversification to everyday Americans.
Legislation gives the authority to the elected or appointed financial officer of the state to monetize and democratize the owning and spending of gold, helping people preserve their buying power.
Is this a brand-new concept? Has it been done before?
This is not a new concept and is being done right now in a variety of commercial applications. Most require gold to be held in Switzerland. We think it would be great for our gold in Utah! You can also see a one-minute explainer video to see how it works. Bringing it to Utah offers both practical and legal advantages.
Isn’t this just another crypto or digital currency with all its complications?
No, this is not a crypto at all, and it is not actually digital any more than a debit card is digital. It is electronic just like what we all use already.
Is this equitable or just another way for the rich to get richer? How can the average person use it when they cannot afford to get in?
Every American, regardless of economic class, deserves the option to have money held in precious metals as a protection against inflation. Now they can hold gold and spend it when needed! Anyone who can afford a checking account will be able to “get in.” We’ve seen the success of commercial versions such as GlintPay and they have very low minimums, sometimes below the minimum required for a checking account.
Is it complicated to do?
NO, anyone who wants to participate can do so by simply opening an account at the Depository. It would be similar to opening a bank account.
How can you compete with credit cards that give miles, points, 30 days cash flow, payment options, etc.?
The intention is not to compete with credit cards. This is a debit card. However, there are many advantages to gold-based money including potential inflation protection. Individuals can still use their credit cards if they’d like. But when it comes time to pay the credit card bill, they could pay it with gold holdings rather than from their traditional checking account. That way they get both the perks and the security of having gold/silver-based money in Utah.
This seems too good to be true. What is the catch? Is there some organization that is pushing this to make private money on it?
No catch. Those who benefit financially from this legislation are people from every economic status AND the state of Utah. The state can make significant revenue from transaction fees - already paid by merchants, storage, and conversion fees. This is a win-win-win for Utah.
What if depositors want physical possession of their own gold?
Simple. They can remove it anytime they want from an official deposity. They can either come and pick it up, or withdraw their balance by converting back to US Dollars.
What kind of things can you purchase with this new instrument of the TBD, this new way to pay?
Because Utah is such an important state, this is a way to pay anywhere in the world. The credit card companies will convert it on the fly just as they do Dollars, Pounds and Euros. Utah Gold and Silver debit card holders could pay bills, buy coffee, entertainment, travel. You name it!
Merchants will be able to accept this form of payment, as they do now with other debit and credit cards.
Is this making Utah into a bank?
No. This would just be another monetary service. Utah can open a depository or use state-charterd banks for gold and silver. Adding a debit card technology on top simply provides people functional access to it. The depository will be able to offer Utah-based money (actually gold or silver) and work with banks. The depository will not offer the wide array of services that banks currently offer. Furthermore, Utah banks could offer either “paper accounts” based on the US dollar or gold and silver accounts (based on Utah Transactional Currency). We believe many banks will want to offer both.
Does this mean that Utah needs to buy gold or silver to back this currency?
NO, Utah will NOT own the gold or silver that backs this currency. This legislation provides for purchases and sales on the open market through the depository rather than from reserves held in the depository. This will be gold and silver owned by the individual, business, or legal entity. The value of the gold or silver a person has on deposit is the amount they can spend via their Utah Gold/Silver debit card.
Will there be tax implications?
Upon passage, be sure to check with a professional tax advisor or accountant to determine any tax implications. We believe there may not be capital gains or losses when using gold as tender.
For many, it will be the first time they have had access to gold and the easy ability to spend it. Legislation makes gold and silver function as tender. Gold and silver then can easily be transactional allowing your constituents and everyone else who wants it to have all the benefits of owning gold or silver and at the same time have a great way to make secure payments.
Is this legal?
Yes! Using gold and silver is a STATE RIGHT secured in the U.S. Constitution Article 1, Section 10. There are several US Supreme Court rulings that support this state right.
WHAT IF THE PRICE OF GOLD OR SILVER GOES DOWN?
It is true that gold and silver prices fluctuate and there is a risk of lost purchasing power when you own gold or silver. People should keep that in mind when converting to a gold-based currency. But throughout history, gold has never been worth zero. Further, the US dollar also has risks and fluctuates relative to other currencies as well as goods and services. We feel it beneficial to have the opportunity to have transactional gold/silver in addition to paper money.