Utah State Begins Paying Businesses for Services in Gold

Gold and silver continue to be important monetary assets in global financial markets. Now, the state of Utah in the US has passed a law that will allow payments in both gold and silver, reports Kitco.

By law, the state of Utah now allows government suppliers to accept payments in gold and silver. No other state has yet granted such legal tender status to precious metals.

The bill, known as HB306, is now awaiting Gov. Spencer Cox’s signature

The bill also allows the state’s treasurer to issue a solicitation to find a broker for a bullion-backed electronic payment system. The payment system will allow businesses that supply the government to choose physical gold and silver as payment methods.

The bill was introduced by Utah Representative Kenneth Ivory and passed through the Senate by Senator Keith Grover. State politicians have said the legislation is part of Utah’s goal to move toward “sound money .” Hard money is defined as precious metals. In 2011, Utah became the first state to recognise gold and silver as legal tender. Now, an electronic payment system and payment service allows for more flexibility and allows for smaller amounts of gold and silver to be distributed.

“During uncertain times, Utah allows government suppliers and service providers to receive payments in gold and silver if they choose,”

Ivory said.

“This law provides Utahns with an alternative way to preserve the purchasing power of their income and savings.”

Last year, Ivory introduced a bill that would have allowed state Treasury Secretary Marlo Oaks to invest up to 10 percent of Utah’s reserves in gold. Today, Oaks says, Utah’s gold reserves have risen to $60 million in value.

The value of Utah’s gold reserves has increased significantly as the price of gold continues to reach new records, surpassing the $3,000 mark in mid-March.

Last year, the Urah Precious Metals Study Group was also established to develop the details of the draft law.

“The study group’s main conclusion was that citizens should have a choice in how they make their money transfers,” Oaks said. “HB306 gives businesses that supply the government the ability to receive payments in precious metals. At the same time, it ensures that the physical assets that back the system are located in Utah and are regularly audited. This not only supports a secure and transparent system, but it is an important step in making gold a realistic payment option for all citizens.”

Various media outlets report that UK company Glint Pay and Utah-based Goldback have also expressed interest in creating an electronic payment system backed by Utah gold.

Key Takeaways

Utah’s move to allow payments in gold and silver marks a significant step toward redefining how value is exchanged in government transactions.

By passing HB306, the state not only reinforces its long-standing commitment to “sound money,” but also pioneers a more flexible and secure financial infrastructure through a bullion-backed electronic payment system.

This initiative empowers businesses with more choice and stability in uncertain economic times while ensuring transparency and accountability through local storage and auditing of precious metals.

As gold continues to rise in value and global interest in alternative currencies grows, Utah is positioning itself at the forefront of a modern monetary shift grounded in timeless assets.