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.

2025-2026 Regular Session Introduced by Brooke Boden and 6 co-sponsors

HF 325 establishes a transactional currency backed by gold and silver in state-approved depositories, offering a secure alternative for businesses and consumers.

Subcommittee recommends passage.

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Summary of Bill HF 325

Bill Number: HF 325
Title: 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.
Status: Subcommittee recommends passage.
Introduced: February 11, 2025
Classification: Bill
Subject: Depositories, Gold, Metals, Money, Silver, Treasurer of State

Purpose and Intent

The primary purpose of HF 325 is to establish a framework for creating a transactional currency based on gold and silver. This currency would be backed by precious metals stored in a state-approved bullion depository. The bill aims to provide an alternative form of currency that could potentially enhance financial security and stability within the state.

Key Provisions

Definitions

The bill introduces several key definitions to clarify its provisions:
- Approved Bullion Depository: A facility located in Iowa or a similar facility in the U.S. (like the Texas bullion depository) that meets regulations set by the state treasurer.
- Bullion: Precious metals (gold and silver) formed into uniform shapes and quantities suitable for transactions.
- Depository Account: Rights and interests established for depositors in accordance with the bill's rules.
- Depository Account Holder: The original depositor or their successors.
- Pooled Depository Account: An account established for collective deposits.
- Specie: Precious metals minted into coins used as currency.

Establishment of Currency

The bill outlines the process for creating a transactional currency that would be directly linked to the value of gold and silver held in the approved depositories. This currency could be used for various transactions, providing a tangible asset backing.

Fees

HF 325 also includes provisions for establishing fees associated with the use of the bullion depositories and the management of depository accounts.

Impact

Who Would Be Affected

State Government: The bill places responsibilities on the treasurer of state to approve and regulate bullion depositories.

Depositors: Individuals and entities wishing to deposit gold and silver would be able to establish depository accounts.

Businesses and Consumers: The introduction of a new transactional currency could affect how businesses and consumers conduct transactions, potentially offering an alternative to traditional currency.

Procedural Aspects

The bill was introduced on February 11, 2025, and has already progressed through a subcommittee, which recommended its passage on February 26, 2025.

A subcommittee meeting was held on February 25, 2025, to discuss the bill.

Conclusion

HF 325 represents a significant legislative effort to establish a new form of currency backed by precious metals. By creating a regulated framework for bullion depositories and associated transactional accounts, the bill aims to provide a secure and stable alternative to traditional currency systems. The ongoing legislative process will determine its final form and implementation timeline.