New State Laws Encourage Consumers to Pay With Gold

Paying for groceries with gold coins may sound like a quaint scene from a bygone era, but new laws in several states are reviving precious metals as currency. Missouri, Texas, Florida, and Arkansas are opening the door for residents to use gold and silver much like cash. Under the measures, precious metals are being recognized as legal tender, with supporters arguing the moves will help people hedge against inflation and sidestep swings in the stock market, the Washington Post reports. Shoppers won't be lugging bars to the store; instead, the idea is to make it easier to use gold investments through digital platforms and debit cards, potentially bypassing capital gains taxes.

The push reflects broader concerns over the dollar's recent decline and skepticism toward federal monetary policy. "People want different ways to pay, different ways to hedge against inflation," said Mike Carter, who lobbied for the changes. When Florida initiated its process last month, Gov. Ron DeSantis said, "You're going to be able to conduct transactions" in these precious metals, per WTVJ. But the new rules may not have much practical effect. Gold's value fluctuates, and using it for everyday shopping could trigger larger tax bills than selling stocks does. "Who wants to hold a money that is taxed?" asked economist Gabriel Mathy, who sees these laws as symbolic gestures.

New technological lets users buy, sell, or spend gold electronically, with companies like Glint Pay offering debit cards backed by gold reserves. However, issues remain about regulation, consumer protections, and the impact on state revenues. Some officials worry about fraud, transaction disputes, and lost tax dollars. Even supporters acknowledge that major hurdles—like federal tax law—remain before gold can truly rival the dollar as an everyday currency, per the Post.