Utah banks on gold, silver as legal currency

 A Bank is a financial institution licensed by a government. 
Its primary activities include borrowing and lending money. Many other financial activities were allowed over time. For example banks are important players in financial markets and offer financial services such as investment funds. In some countries such as Germany, banks have historically owned major stakes in industrial corporations while in other countries such as the United States banks are prohibited from owning non-financial companies.Banking in the United States is regulated by both the federal and state governments of the United States of America. The US banking sector's short-term liabilities as of October 11, 2008 are 15% of the GDP of the United States or 43% of its national debt, and the average bank leverage ratio is 12 to 1. In 1781, an act of the Congress of the Confederation established the Bank of North America in Philadelphia, where it superseded the state-chartered Bank of Pennsylvania founded in 1780 to help fund the American Revolutionary War. The level of government regulation of the banking industry varies widely, with countries such as Iceland, the United Kingdom and the United States having relatively light regulation of the banking sector, and countries such as China having relatively heavier regulation.
Lawmakers in Utah have approved a measure which legalizes the use of gold and silver coins as legal tender.
The US dollar was once “good as gold” but that notion has been shaky over the past few years. As the dollar has fallen, gold, silver and other precious medals have risen in value.
The new state law legalizes gold and silver coils as currency and even exempts them from the state’s capital gains tax.
The law, sponsored by Republican State Representative Brad Galvez was initially proposed as a protest against US federal monetary policy and the Federal Reserve. He believed Americans were losing faith in the US dollar and a point needed to be made. While he supports the use of precious metals as currency, Galvez is not calling for a return to the gold standard to back the dollar.
"We're too far down the road to go back to the gold standard," Galvez told AP. "This will move us toward an alternative currency."
"You've seen gold replacing these currencies as safety instruments," noted Matt Zeman, market strategist for Kingsview Financial. "If I don't feel good about the dollar or other currencies, I'm putting my money in precious metals.
"Making gold and silver coins legal tender sends a strong signal to Congress and the Federal Reserve that their monetary policy is failing," said Ralph Danker, project director for economics at American Principles in Action.
The new law has encouraged some to begin using the new currency, and encouraged others to be a bit entrepreneurial
Craig Franco homes to cash in on the new law. His plan – open a bunnies that stores and secures gold and silver coins for customers, and then issues a debit like card that allows people to spend their gold and silver electronically. It is a simple idea of old world currency meeting new world technology.
Now that the new currency has been legalized, Franco feels modernizing how a consumer can spend it will really open up the market.