PHOENIX, Ariz. (Feb. 13, 2024) – On Monday, an Arizona Senate committee passed a bill that would establish a specie-backed transactional currency and a state bullion depository.

Sen. Jake Hoffman introduced Senate Bill 1633 (SB1633) on Feb. 5. The proposed law would establish the Arizona Bullion Depository. The depository would serve as safe storage for precious metals and would facilitate the issuance of state-minted gold and silver coins, along with a specie-backed transactional currency.

On Feb. 12, the Senate Finance and Commerce Committee passed SB1633 by a 4-3 vote.

The bullion depository would serve as the "custodian, guardian and administrator of certain bullion and specie that may be transferred to or otherwise acquired by this state or an agency, a political subdivision or another instrumentality of this state."

The proposed law specifies that the state treasurer "may deposit a portion of state monies in the depository in the form of bullion, and that bullion deposit is considered part of this state's financial reserves."