Bills create first state-backed digital currency, bullion depository
LANSING, Mich., Dec. 12, 2024 — State Rep. Alabas Farhat (D-Dearborn) has introduced two innovative bills aimed at revolutionizing Michigan’s financial landscape by establishing a state-backed digital currency and a secure bullion depository.
House Bill 6214, known as the Michcoin Act, proposes the creation of a gold and silver-backed digital currency, Michcoin, that will offer Michiganders a stable, secure alternative to traditional fiat currencies. The bill also establishes the Michigan Bullion Depository, an office within the Department of Treasury, to store and manage gold and silver reserves, ensuring Michcoin is fully backed by physical assets.
The feasibility of Michcoin and the establishment of the depository will be thoroughly assessed by the Department of Treasury, with findings reported to state leadership within one year. If enacted, this legislation could position Michigan as a leader in financial innovation and stability.
“Michcoin represents a bold step toward financial security and innovation,” Farhat said. “This initiative will not only strengthen our state’s economic resilience but also give Michigan residents a reliable, precious metal-backed alternative to traditional currency.”
House Bill 6215 includes depository security officers within the definition of “law enforcement officer” under the Michigan Commission on Law Enforcement Standards Act. Training and licensing standards that apply to law enforcement officers would also generally apply to depository security officers, ensuring the highest standards of security and accountability.
“The depository will be a model of transparency and trust — ensuring its security is paramount,” Farhat continued.
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