Utah GOP lawmakers back bill to allow state to pay vendors in gold, help Americans beat inflation
Utah GOP Lawmakers Push Bill to Pay Vendors in Gold, Aiming to Combat Inflation
In a bold move that could reshape how states approach financial transactions, Republican lawmakers in Utah are advancing a bill that would allow the state to pay vendors in gold. This legislative effort, which has already gained traction in the Utah House and is now under consideration in the Senate, is being touted as a way to help Americans preserve their purchasing power in the face of persistent inflation. As of March 5, 2025, the proposal has sparked widespread discussion about the role of precious metals in modern economies and the potential return to a gold-based financial system.
The Proposal: Gold as a Payment Option
The bill, spearheaded by Rep. Ken Ivory in the House and Sen. Keith Grover in the Senate, seeks to establish a framework where vendors working with the state can opt to receive payments in physical gold or silver. Rather than mandating a full shift away from the U.S. dollar, the legislation offers a voluntary alternative, allowing participants to hedge against the declining value of fiat currency. State Treasurer Marlo Oaks has been tasked with studying the feasibility of this system and developing a “precious metals-backed electronic payment system,” which would facilitate transactions while ensuring the metals remain securely stored within Utah.
Advocates argue that gold’s historical stability makes it an attractive option in an era of economic uncertainty. “Since gold usually rises in value, choosing to receive payment in gold will mean you could be less impacted by inflation,” Oaks recently told KSL News Radio. He emphasized that gold has consistently held its purchasing power over time, unlike the dollar, which has been eroded by inflationary pressures driven by federal monetary policies.
A Response to Inflation and Federal Policy
The push for this bill comes amid growing frustration with the Federal Reserve’s handling of the U.S. economy. Critics, including many conservatives, contend that the central bank’s policies—such as quantitative easing and low interest rates—have flooded the market with dollars, devaluing the currency and fueling inflation. With gold closing at approximately $2,915 per ounce on March 4, 2025, according to Barron’s, its value has soared in recent years, reinforcing the argument that it serves as a reliable store of wealth.
Utah’s GOP lawmakers see this as more than just a practical measure—it’s a symbolic stand against federal overreach. The state has a history of challenging the dominance of the dollar; in 2011, Utah became the first state to recognize gold and silver coins minted by the federal government as legal tender, eliminating state taxes on their exchange. The current bill builds on that foundation, potentially setting the stage for a broader movement among states to embrace precious metals as a counterweight to the Federal Reserve’s fiat system.
Broader Implications: A Return to the Gold Standard?
Supporters of the bill, including conservative commentators like Kevin D. Freeman and Daniel Horowitz of Blaze Media, view it as a stepping stone toward reviving the gold standard—a monetary system where currency is directly tied to a fixed quantity of gold. Horowitz has suggested that if the bill passes, Utah could become “the first state where we can begin constructing a voluntary and gradual, de facto gold standard.” This vision aligns with the states’ rights advocacy of groups like the Tenth Amendment Center, which argue that the Federal Reserve’s reliance on paper currency enables unchecked money creation, a practice states could circumvent by adopting gold-based policies.
The U.S. abandoned the gold standard in 1971 under President Nixon, severing the dollar’s convertibility to gold and ushering in the era of fiat currency. Since then, inflation has been a persistent concern, with recent years seeing sharp increases in the cost of living. Proponents of Utah’s bill argue that allowing gold payments could inspire other states—and perhaps even the federal government—to reconsider the merits of a gold-backed system. With the U.S. holding roughly $770 billion in gold reserves, the idea is not as far-fetched as it might seem.
Challenges and Criticisms
Despite its momentum, the bill faces practical and philosophical hurdles. Implementing a gold-based payment system would require significant infrastructure, including secure vaults and a mechanism for electronic transactions backed by physical metals. State Treasurer Oaks has acknowledged the complexity, noting that his office must issue a competitive procurement to design and operate such a system. Questions remain about how vendors would redeem their gold, how the state would manage fluctuating gold prices, and whether the system could scale effectively.
Critics also caution that tying payments to gold could limit economic flexibility. Economists like Alan Stephens of Utah State University have previously warned that a gold standard restricts growth by tethering the money supply to a finite resource. Others argue that inflation is better managed through Federal Reserve policies, such as adjusting interest rates, rather than reverting to a commodity-based currency. Internationally, no major economy currently operates on a gold standard, raising concerns about the dollar’s global competitiveness if states like Utah diverge from the norm.
A Step Toward Financial Independence
For its backers, the bill is less about immediate practicality and more about planting a seed for change. Rep. Ken Ivory, who successfully sponsored a 2024 law authorizing Utah to hold gold and silver reserves, sees it as a way to “weather the economic turbulence and inflation resulting from decades of federal fiscal recklessness.” The legislation aligns with a broader trend of states seeking financial autonomy—Texas, for instance, opened its own gold depository in 2018, and Tennessee has explored similar measures.
As Utah’s legislative session nears its end in March 2025, all eyes are on the Senate, where the bill’s fate will be decided. If signed into law by Governor Spencer Cox, it could mark a turning point in how states address inflation and assert their economic sovereignty. Whether it sparks a nationwide shift or remains a niche experiment, Utah’s gold payment proposal underscores a growing unease with the status quo—and a willingness to look to the past for solutions to the future.
This article reflects the latest developments as of March 5, 2025, drawing on statements from lawmakers, economic data, and historical context to explore the motivations and potential impact of Utah’s groundbreaking bill.
