‘Pirate money’ at the Statehouse? Ohio lawmakers pitch gold-backed currency.

COLUMBUS, Ohio — Ohioans could soon be using “pirate money” to buy their morning cup of coffee.

That’s how Rep. Jennifer Gross, a Butler County Republican, jokingly described her proposal to create a “transactional currency” backed by gold and silver.

House Bill 208 wouldn’t have Ohioans hauling around gold doubloons. Payments would run through debit cards or phone apps tied to bullion held by the state treasurer in a secure depository.

“You don’t know unless I say, ‘Hey, look, I’m using gold to buy your coffee,’” Gross said.

Under the bill, the treasurer would contract with a private company or an approved bullion depository to hold the gold and silver that back the new currency.

People could buy in with regular U.S. dollars, then use their accounts to make purchases, withdraw cash or convert their balance to precious metals.

At the point of sale, gold or silver would automatically convert into dollars — the same way your bank converts money into pounds, euros, or yen when you buy something from overseas.

Gross and Wyandot County Republican Rep. Riordan McClain told the House Finance Committee their bill is about “choice and freedom.”

They described HB 208 as a response to doubts about the stability of the U.S. financial system. Gold and silver hold their value better than paper money, they said, especially during inflation or when trust in Washington’s fiscal management falters.

“These are all reasons Ohioans deserve an alternate option for their money,” McClain said.

Article I, Section 10 of the U.S. Constitution bans states from printing their own currencies but allows gold and silver to be used for payments.

Some Ohioans already use precious metals this way, McClain noted, but it’s a tiny number.

Gross said that’s because federal tax law doesn’t recognize precious metals as currency, and the IRS treats them as collectibles subject to capital gains taxes.

“If a state makes gold and silver both legal tender and functional currency,” she said, “a compelling case can be made that they should no longer be taxed that way.”

Several states have already passed similar “pirate money” laws.

Texas is the furthest along. Lawmakers approved their plan this summer, and the state will build a Texas Bullion Depository at a yet-to-be-determined location.

Gov. Greg Abbott told an NBC station in Dallas that the goal is to “repatriate $1 billion of gold bullion from the Federal Reserve in New York to Texas.”

The state’s legal-tender rules take effect Sept. 1, 2026, and the payment system is expected to launch by May 2027.

Ohio’s HB 208 doesn’t go as far. It would rely on existing depositories to store residents’ gold and silver.

“A lot of the cost associated with precious metals is the cost of storage,” McClain said. “Texas went and built their own depository. We’re not asking that in this legislation. I do think it should be a consideration.”

Rep. Allison Russo, a central Ohio Democrat, questioned what this might cost taxpayers. Texas, she said, expects to spend about $5.5 million on administration and infrastructure.

HB 208 was written to be revenue-neutral, meaning it shouldn’t need general fund dollars. McClain said the treasurer ’s office would set fees to cover the costs.

Some legal experts also have constitutional concerns.

During debate over the Texas bill, Victoria North from the Texas Comptroller’s Office warned that this could expose state employees to criminal liability under federal law.

“The United States has the sole power to coin money,” North testified. “If any individual or state tries to compete with or replace the medium of exchange adopted by our government, that could violate federal statutes.”

Gross told the House Finance Committee that HB 208 doesn’t coin new money. It simply makes it easier for Ohioans to use existing legal tender.

Republican House Speaker Matt Huffman told Cleveland.com the concept is “intriguing,” but he has “about 100 questions” before deciding whether to back the bill.