A gram of gold to pay a school fee. In Missouri, this could soon become a reality. The state legislature has approved a bill that opens the possibility of using gold and silver, in electronic format, for payments to public entities. The measure, now on the desk of Republican Governor Mike Kehoe, would make the state one of the few in the U.S. to officially recognize precious metals as legal tender, albeit in a modern, digital form.
The bill, the result of a compromise among various members of the majority, stipulates that state agencies and departments would be required to accept this unusual form of payment for taxes and debts. No such obligation, however, would apply to private businesses, which would be free to decide whether or not to accept these new financial forms.
This is not the first time similar proposals have emerged in Missouri, often pushed by conservative groups like the Freedom Caucus or the Missouri Freedom Initiative. The inspiration, however, comes from Utah, which in 2011 became the first state to legalize the use of precious metals as an alternative currency.
According to its sponsors, the goal of the bill is to restore economic autonomy to citizens by offering an alternative to the traditional dollar, which is increasingly under fire for inflation and expansionary monetary policies. Representative Bill Hardwick, the bill’s sponsor, stated that the true aim is to strengthen the economic and political freedom of the population, implying that it is a concrete response to economic dynamics imposed by Washington.
However, doubts and criticisms are not lacking. Several Democratic representatives have expressed skepticism, both about the technical feasibility and the actual usefulness of the measure. Representative Kemp Strickler noted that he did not appreciate the part relating to the use of gold and silver, though he chose not to openly oppose it, opting instead for an abstention. He pointed out that implementation could prove problematic, especially for smaller businesses.
Democratic Senator John Rizzo had also previously raised concerns about the logistics of daily transactions with precious metals, joking about the idea of getting “change in gold” for a soda.
The legislative process was not without obstacles. Previous versions of the bill had been rejected by the Chamber of Commerce, which opposed the idea of mandating businesses to accept it. The current version, which leaves the choice to the private sector, does not face any official opposition.
The law, which could go into effect as early as August if signed by Governor Kehoe, assigns the Department of Revenue the task of defining the practical procedures. Among the options on the table are apps, prepaid cards, and digital systems backed by physical gold or silver reserves stored in vaults. According to Hardwick, market regulation mechanisms will gradually resolve the initial complexities, making way for a more flexible and pluralistic system.
