Gold could be method of payment for the state if Gov. Cox signs a bill into law
Mar 18, 2025, 3:32 PM | Updated: Mar 19, 2025, 6:07 am
SALT LAKE CITY — A new bill that could allow the state of Utah to pay its vendors in gold and silver was recently passed in the 2025 legislative session. It now awaits Gov. Spencer Cox’s pen, and according to the bill’s sponsor, his signature is forthcoming.
Once signed, the new legislation would allow the state to pay its vendors with the gold and silver it invested.
“Last year, you recall, I passed a bill that allows us to invest up to 10% of our rainy day fund in precious metals,” said HB306 sponsor Rep. Ken Ivory. “And as you’ve seen, gold as an investment if you look at it, that’s doing extremely well and is one of the most secure, means of payment recognized in the world for thousands of years.”
Ivory said HB306 is a continuation of his efforts and those of other lawmakers who paved the way in 2011 with a law that made gold and silver coins legal tender in the state.
“This just takes another step to begin making gold fractional and transactional, where you could buy a soda pop or buy a business, with gold,” said bill sponsor Rep. Ken Ivory. “And so, (this legislation) begins to make, electronic, fractional transactional, gold and silver as a payment system that’s recognized under the Constitution.”
Related: What to know about Fort Knox’s gold depository
Ivory also highlighted work by the U.S. Senate in 2024 that realized the nation’s debt was a threat to the country’s security.
“The U.S. Senate unanimously passed resolution 600 — they warned that China and Europe are developing alternate payment systems to weaken the dollar,” he said. “This gives people in Utah and the state payment options, because you know, with a $37 trillion debt and overspending $2 trillion a year, it’s good to have options and it’s good to have options that hold their value across decades, across centuries.”
Electronic payment system
HB306 also tasks the state treasurer with creating an electronic payment system backed by precious metals that will help facilitate it.
“The first step is a competitive RFP,” he said. “So the treasurer will put out (a) request for proposal. And there are a number of service providers that are providing a myriad — think of like gold-backed Bitcoin. That’s the type of thing we’re talking about. But it’s not just an algorithm. You have physical gold attached to that payment system.”
The state treasurer will be expected to select a service provider and ensure it complies with the State Money Management Act, and evaluate potential tax implications the electronic payment system may bring with it.
“At the end of the day they’ll select one provider that for the state, it ends up being just like having another bank account,” he said. “The state pushes dollars and the vendor receives gold that is vaulted, audited, insured in Utah.”
After the system is implemented, the treasurer will evaluate the option of paying state employees through the system, too.
The Department of Finance is tasked with creating “policies and procedures” for the use of the system and integrating it into the statewide accounting system.
The study
Another task for the treasurer outlined in the bill will be to perform an annual study to ensure the investment stabilizes the state’s economic security, including “families and residents” and “businesses.”
The state treasurer will then deliver the annual study results to the Utah Legislature and recommend new legislation to the Revenue and Taxation Interim Committee based on its findings.
The bill outlines that vendors and any state entities will opt-in to the electronic payment system, and will not be required to participate. Further, the use of it will not “prevent the state from using other forms of payment or currency for the state’s operations.”
Contributing: Heather Peterson, KSL NewsRadio
This article corrects a misrepresentation of Senate Resolution 600.
