Legislation Proposal: Creation of the Ohio State Bank and Gold-Backed Digital Currency

Section 1: Title This Act shall be known as the “Ohio Economic Stability and Sound Money Act.”

Section 2: Purpose The purpose of this Act is to:

  1. Establish the Ohio State Bank to support the economic growth and financial independence of the State of Ohio.
  2. Introduce and operationalize a gold-backed digital currency (“Ohio Gold Digital Currency”) to provide residents and businesses with a stable and constitutionally compliant alternative to Federal Reserve Notes.
  3. Facilitate real-time currency conversion at points of sale to ensure seamless integration of the Ohio Gold Digital Currency into existing financial systems.
  4. Empower Ohio residents and businesses with greater monetary freedom while stabilizing the regional economy.

Section 3: Establishment of the Ohio State Bank 
(a) Creation: The Ohio State Bank (“OSB”) is hereby established as a publicly-owned financial institution under the oversight of the State of Ohio.
(b) Governance: The OSB shall be managed by a Board of Governors appointed by the Governor of Ohio, subject to confirmation by the State Senate, and shall include representatives from banking, finance, legal, and public sectors.
(c) Functions: The OSB shall:

  1. Manage the issuance and operation of the Ohio Gold Digital Currency.
  2. Serve as a depository institution for state funds and financial transactions.
  3. Offer services to Ohio-chartered banks, credit unions, businesses, and individuals, including loans, investment opportunities, and transaction processing.
  4. Ensure compliance with all state and federal laws.

Section 4: Ohio Gold Digital Currency 
(a) Issuance: The OSB is authorized to issue the Ohio Gold Digital Currency, backed by physical gold reserves held in trust by the bank.
(b) Legal Framework: The Ohio Gold Digital Currency shall:

  1. Be fully compliant with the U.S. Constitution and federal regulations.
  2. Operate as a voluntary alternative to Federal Reserve Notes for transactions within Ohio.
  3. Be redeemable for physical gold at a rate set and maintained by the OSB.
    (c) Technology: The Ohio Gold Digital Currency shall be based on a secure blockchain system ensuring transparency, security, and accessibility.
    (d) Integration: The OSB shall facilitate real-time currency conversion mechanisms, allowing seamless transactions between Federal Reserve Notes and Ohio Gold Digital Currency at participating merchants and financial institutions.

Section 5: Participation 
(a) Eligibility: All Ohio residents, businesses, state-chartered banks, and credit unions may participate in the Ohio Gold Digital Currency system.
(b) Enrollment: Residents and institutions may voluntarily enroll in the program through the OSB or participating financial institutions.

Section 6: Economic Benefits The Ohio Gold Digital Currency aims to:

  1. Provide residents and businesses with a stable monetary alternative amidst inflationary pressures.
  2. Stimulate local economic growth through sound investment backed by a tangible asset.
  3. Expand opportunities for state-chartered banks and credit unions to participate in gold-backed investment and lending initiatives.

Section 7: Funding and Implementation 
(a) Initial Capitalization: The Ohio General Assembly shall allocate funding for the initial establishment of the OSB, including:

  1. Acquisition of gold reserves.
  2. Development of the digital currency platform.
  3. Outreach and education programs for residents and businesses.
    (b) Ongoing Revenue: The OSB shall generate revenue through transaction fees, investment returns, and other financial services.
    (c) Timeline: The OSB and Ohio Gold Digital Currency shall become operational within 18 months of the enactment of this Act.

Section 8: Oversight and Accountability 
(a) Audits: The OSB shall be subject to annual audits by an independent third party to ensure transparency and fiscal responsibility.
(b) Reports: The OSB shall submit quarterly reports to the Ohio General Assembly on the performance and adoption of the Ohio Gold Digital Currency.

Section 9: Severability If any provision of this Act is found to be invalid or unconstitutional, the remaining provisions shall remain in full force and effect.

This is a draft proposal for discussion purposes only and not endorsed by FCLPO.