States across America are increasingly turning to gold as a hedge against inflation, with some even promoting gold-backed debit cards. States like Texas and Florida have led the way with transactional gold laws, allowing residents to save and spend gold through dedicated accounts. Critics, however, worry these measures may disrupt markets and serve as tax shelters for the wealthy. Supporters argue gold offers a reliable inflation shield, as its value has generally risen over time.
Georgia state Sen. Marty Harbin, a Republican, introduced legislation to establish gold and silver as legal tender, promoting an electronic payment system. Though the state Senate approved it, the bill stalled in a House committee. Harbin plans to reintroduce the bill next session. Oklahoma is considering a similar measure for a gold-backed payment system, while states like Arizona, Iowa, and Mississippi have debated similar legislation this year.
Utah Republican Gov. Spencer Cox allowed a gold law to pass without his signature, despite concerns over government involvement in the gold market. “Many are concerned that this will result in unwelcome government involvement in the gold market,” he wrote in a recent statement.
Proponents of transactional gold legislation seek tax exemptions for precious metals, arguing that gold should not be taxed like other investments due to its historical status as currency. Matthew Gardner from the Institute on Taxation and Economic Policy disagrees, stating gold should be taxed like other assets.
Gold for the Masses
Georgia Democratic state Sen. Sonya Halpern found transactional gold systems appealing. She highlighted platforms that let consumers own small gold shares and spend them through cards. Halpern, a cosponsor of Harbin’s bill, believes gold could complement traditional savings methods. In Georgia, British firm Glint offers prepaid debit cards backed by gold in Swiss vaults.
The Sound Money Defense League opposes such legislation, arguing it’s unnecessary since current systems already make gold spendable. Jp Cortez, the executive director, criticized the proposed bills as self-serving, benefiting vendors like Money Metals Exchange.
Glint COO Jason Ollivier acknowledged legislation isn’t essential for platform use but helps scale the technology. “These laws aim to remove friction, particularly around legal tender status,” he wrote, noting inflation drives legislative interest. Products like Glint offer consumers small gold amounts, currently trading near $5,000 per ounce, to preserve purchasing power.
States Boosting Gold
Utah passed a law requiring a precious metals-backed payment system for state vendors. State Treasurer Marlo Oaks hopes it will legitimize the gold market and challenge federal tax policy. Several states, including Texas and Wyoming, are stockpiling gold, with Utah holding around $178 million worth. Chris Colson from the Federal Reserve Bank of Atlanta sees potential for gold-backed systems to grow, likening them to the rise of Stablecoin, a cryptocurrency tied to the U.S. dollar.
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