FLORIDA – Florida’s chief financial officer announced the launch of a study to see how gold and silver can be used as money in the state.
Officials said the use of gold and silver would have added benefits of being a tax-exempt hedge against inflation and devaluation of the U.S. dollar and to protect Floridians from central bank digital currencies.
“I’m launching this study to determine the best way to get it done,” Jimmy Patronis said. “I’ve also included in the framework of the study that gold and silver cannot be taxed as property for the purposes of using them as money. Families and businesses don’t need higher taxes; they need innovative solutions to help them grow.”
Patronis has also included the following tax-exempt parameters:
- Gold and silver bullion would NOT be characterized as personal property for state taxation or regulatory purposes.
- The purchase or sale of any type or form of bullion would NOT give rise to any state tax liability.
- The exchange of one type or form of legal tender for another type or form of legal tender would NOT give rise to any state tax liability.
Officials said it could create a currency competition that would reduce the effects of “ongoing financial abuses” like “de-banking.”
Keef Jones, the manager of Jacksonville Gold Exchange likes the idea.
“Gold and silver used to back our currency so doing that again seems like a great idea...give people a sense of calm and confidence,” Jones said.
Abdel Missa, a finance professor at the Jacksonville University Davis College of Business, is hesitant about the idea.
“I’m skeptical about the initiative, I think there are a lot of challenges in it,” Missa said.
He added that the value of gold and silver fluctuates frequently.
“Gold can, in a few weeks, lose 20% or 30%, [in value] it’s something that is volatile, and that will create a huge issue from an owner’s perspective,” Missa said.
He mentioned there will be a storage issue for gold and silver as it can be heavy and bulky.
Keef and Missa said they’d be happy to find out the results of the study and they hope it analyzes how businesses can tell if the gold and silver bars are real or fake and how much value the coins or bars hold.
Officials said the study will also explore the use of gold and silver coins (or digital equivalents) to pay for private debts, taxes, and fees levied by the state or local government, and the history of how states have used them as a form of money.
