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.

SF 112 would establish a new Iowa transactional currency backed by physical gold and silver stored in a state-approved depository. Individuals or other states could purchase the currency by paying for the equivalent amount of gold or silver (with fees), with each unit representing a specific fractional troy ounce of metal. Holders could redeem the currency for U.S. dollars (by selling the metal) or for physical gold/silver (by receiving the metal from the depository), and the treasurer of state would set security and fraud prevention rules. The bill directly affects currency buyers, the treasurer’s office, and approved depositories, but does not change existing state or federal currency laws.