Iowa Senate Bill SF2108

Iowa 2023-2024 Regular Session

• Introduced: 1/24/24
• Refer: 1/24/24

Caption

A bill for an act relating to the establishment of a transactional currency based on gold and silver held in a bullion depository approved by the treasurer of state, and providing fees.

Impact

This bill has the potential to significantly alter the landscape of currency and financial transactions within the state. By recognizing gold and silver as viable currency alternatives, it opens discussions about the limitations of current state finance systems. Furthermore, it mandates that the state treasurer must maintain a pooled depository account that holds sufficient specie and bullion to allow for the redemption of the transactional currency, which aims to enhance trust in this new monetary system and potentially alleviate concerns about traditional financial stability.

Summary

Senate File 2108 aims to establish a transactional currency based on gold and silver, which will be held in an approved bullion depository as authorized by the state's treasurer. The bill outlines the roles and responsibilities of the treasurer in managing the issuance of this new currency, which will serve as legal tender. Essential provisions include regulations for the purchase and redemption of this currency, ensuring that it is backed by actual specie or bullion, thereby giving it tangible value related to precious metals. The legislation aims to create an alternative currency that reflects the fiscal values connected to these metals.

Contention

S.F. 2108 raises notable points of contention related to its implications on existing monetary policies and the role of state financial oversight. Critics may argue that this shift towards a gold and silver-backed currency could suggest a return to outdated financial paradigms, questioning its practicality in a modern economy. Moreover, there may be concerns regarding the administrative complexity and costs associated with implementing and managing this new currency system, particularly with respect to regulatory measures and the establishment of a private vendor for currency operations. There is also the potential issue of how this legislation interacts with federal monetary law, especially regarding competition with the U.S. dollar.