Summary: This week, the Arizona Legislature passed a bill allowing gold and silver for legal tender purpose. If the governor signs the bill, Arizona will be the 2nd state to allow an alternative currency. Lawmakers from the Grand Canyon State cite concerns with the stability of the world’s monetary system as the motivation behind the bill. Use of gold or silver for transactions would be completely voluntary – it would be up to an individual merchant as to whether they accept it or not. Opponents of the bill claimed that it would create headaches among businesses and state government officials since, in effect, they would need to manage dual monetary systems. The idea of gold/silver currency has been gaining in popularity in recent years. Nearly a dozen other states are considering similar measures. Read more…
UPDATE – The legislation was ultimately vetoed by Gov. Jan Brewer, who cited concerns for lost tax revenue as the main reason. She also cited concern about the “administrative and fiscal burdens” of such an action. Read more…