States Move Toward “Transactional Gold”
With the dollar’s decades-long decline in purchasing power accelerating in recent years, state governments across America are moving quickly to give citizens a constitutional option for both saving and commerce. Known as “transactional gold,” the idea is for state governments to create a system where gold and silver can easily be acquired, stored, used, saved, and turned back to dollars to be spent. Multiple states have already approved bills to do it, with more expected.
Under the system, states either create or contract with a depository institution to store and manage the precious metals. In what was seen as a challenge to the Federal Reserve’s mismanagement of the U.S. currency, Texas created its own bullion depository a decade ago. The “transactional” component comes when citizens are able to obtain a mobile app or debit-style card allowing them to spend the precious metals anywhere, anytime. Merchants can choose to be paid in dollars or metal.
Arkansas Goes First
The first state to officially get legislation signed into law creating a transactional gold system was Arkansas. On April 17, Governor Sarah Huckabee Sanders put her signature on House Bill 1918, authorizing gold and silver as legal tender for electronic payments. Building on 2023 legislation declaring the metals to be legal tender, the legislation passed with strong bipartisan support. Supporters said it aligned with the Constitution, which prohibits states from making anything other than gold or silver legal tender.
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