The Indiana Honest Money Act….

-Enables Hoosiers to again use Gold and Silver as a currency, realizing once again the benefits and value of a sound, inflation proof currency. As proposed, gold and silver would be exchanged for fiat currency at their free market ‘bullion’ prices and weights. The basis for value of this ‘new’ currency – silver and gold in specified coinage forms, and by the gram in digital forms, would be free to use as a ‘alternate’ currency to the dollar. The rapidly expanding ‘digital gold’ or ‘electronic money’ industry has been in operation worldwide since 1996. See the Wikipedia article “Digital Gold Currency” for more information. Or visit one of the providers: e-Gold.com, or Goldmoney.com.

- As well as digital gold, the bill sets standards for acceptably minted coinage for free market deposit, withdrawal and use in business with the State – i.e., krugerands, gold eagles, gold pesos, gold pandas. As a consequence, gold and silver in hand will be more commonplace, exchangeable and available for those who wish to use it.

- The bill sets standards for Electronic/Digital Gold Currency providers, and establishes safeguards and guidelines for establishing the worldwide Electronic Currency Exchange industry in Indiana. It also sets standards for species exchange vendors and species vaults. These are the businesses that would exchange sound money for fiat, and store individuals’ deposits to their digital currency accounts. An added unstated benefit is the opportunity for Indiana to be at the forefront of a new industry that is mainly offshore at this time. The opportunities for new businesses and jobs, more specifically, local jobs, is excellent. In all actuality, Hoosiers can already use these services privately in their own transactions... the Honest Money Act will simply bring it to a wider audience.

- The State acquires and maintains an account of gold and silver through collections of tobacco taxes, and has the option to build a surplus, protecting the State’s financial resources as well from inflation and calamity. The State isn’t required to procure or disburse any more gold or silver than that collected. There is no upfront cost for the State. The added accounting and disbursement costs for the state could be readily recouped from species vendor, vault and exchange licensing.

- Provides the ability for direct payment to and from the State for fines, fees, taxes, licenses, land and business transactions in gold or silver coins, or digital gold currency, by setting up an account with one of the same providers that the state uses. Or select payment in hard coinage of gold or silver via a species exchange.

- Is optional for citizens, and other than collection of Tobacco related State revenue (licenses, stamps, taxes); participation is voluntary. Federal Reserve Notes continue to function as ‘legal tender’. The Indiana Honest Money Act works in parallel with the Federal Reserve Notes – the ‘dollar’, competing with it.