The idea is simple: Store your gold and silver coins in a vault, and Franco issues a debit-like card to make purchases backed by your holdings.The Minnesota legislature has already set up a committee to study the issue, and there's a push to have the U.S. government drop the caital-gains tax on gold and silver.
He plans to open for business June 1, likely the first of its kind in the country.
"Because we're dealing with something so forward thinking, I expect a wait-and-see attitude," Franco said. "Once the depository is executed and transactions can occur, then I think people will move into the marketplace."
The latter would go a long way to facilitating the use of gold and silver as money, as capital-gains taxes inhibit the circulation (buying and selling) of the metals. Should the feds do so, gold and silver tender will take off.