Amidst national debate and despite advancements in over a dozen other states, Idaho’s lawmakers have a long history of rejecting sound money policy. But that could all change in 2025.
Rising prices, growing surveillance, and reduced financial access gave rise to Idahoans’ concerns for their savings, privacy, and livelihoods. Now is the time for Idaho to join her peers and provide relief through sound money solutions. Idaho has an opportunity not only to make real change but to become an example for other states to emulate.
In this sound money policy series, we previously unpacked the challenges facing Idahoans and how the Gem State compares to others. This final piece presents the solutions that will make Idaho a paragon of sound money policy in America.
The presidential election drew a lot of national attention to the issue of digital assets and bitcoin policy. Though this is an important aspect of sound money policy, Americans should be worried about the lack of emphasis on reducing the debt and federal spending, as compared to previous elections.
The inflationary government spending is likely to continue. Many Americans may be unaware that Congress suspended the debt ceiling, removing any control on debt accrual and the little leverage Conservatives had to force change. At the time of this writing, the debt approaches $105,000 per citizen.
Though the federal government failed to manage the financial system well, it seeks more control over your finances. The Biden administration directed bureaucrats to develop a central bank digital currency (CBDC) to do this, welcoming a future where bureaucrats can surveil and control Americans’ finances with pinpoint accuracy.
Censorship and control are not too far from home. Idaho Central Credit Union faced public backlash for updating their policy to ban firearms purchases — something they noted as “industry standard.” This brings the issue of debanking and silencing those who don’t align with an environmental, social governance (ESG) agenda close to home for Idahoans.
To fight these new and growing threats to financial liberty, Idaho must enact a sound money agenda in January.
To start, the state should work to reduce its dependency on federal funding to support operations. Federal funding supports nearly two-fifths of the entire state budget. But much of it could go away once pandemic relief funds expire in 2026.
Thus, lawmakers don’t need to pass any new policies to reduce federal influence. Rather, they only need the willpower to say no to policies that make temporary COVID programs and their funding permanent.
Idaho should also prioritize banning the state from accepting and utilizing a CBDC. Idaho should withdraw from any programs that are contingent on participation in a CBDC. There should also be strong provisions for recourse against bureaucrats who violate this law.
Though a CBDC ban is critical, it can be ineffective at preventing the federal government from compelling private individuals to use it. Idaho needs to enact policies that allow private alternatives to the banking system to flourish. This provides an emergency exit for individuals, defending them against the imposition of a CBDC.
Such policies include defending the right to mine, hold, and transact digital assets, such as bitcoin. There should also be provisions to protect digital asset miners intending to do business in the state.
In this vein, Idaho should also exercise the authority granted by the U.S. Constitution to make gold and silver legal tender. Idaho should not limit the scope of the bill to only federally issued bullion and coin but include all gold and silver with certified weight and purity, akin to the model seen in Arkansas.
The Gem State should also safeguard taxpayer funds from inflation by putting gold and silver on the balance sheet. Expanding on the work in Utah, Idaho should hold these assets directly. In whole, this policy will save taxpayers from having to fund losses to the dollar’s value.
Idaho should also work to end the practice of debanking — defined as “political and religious discrimination by financial institutions.” Though banks are technically private entities, they are so heavily regulated that they are vectors for government surveillance and censorship. It is time this practice is outlawed.
Finally, it should be harder for bureaucrats to conduct warrantless surveillance of your finances. This could be a problem, even for those who use digital assets instead of the dollar for their transactions. Protections that bolster Americans’ Fourth Amendment rights are essential for true financial freedom.
Adopting these policies in whole would allow Idahoans to prosper through improved privacy, secured savings, and expanded financial access.
Sound money policy preserves the privacy Americans expect in a free society. But it is more than that: in a financial system where banking access is so crucial to one’s livelihood, true freedom of speech and association requires banking institutions to be agnostic to your political or religious ties. The current banking system and a CBDC work against this end.
The redistributive effects of inflation are devastating to all families — and increasingly so as the dollar loses value. Providing options through alternative currencies allows Idahoans to hedge their savings against inflation and protects their financial opportunities in the long term.
In all, sound money policy is crucial for the prosperity of all Americans. States have options. It is in their best interest not to wait for the federal government to “come to the rescue” with their own solutions. Other states are already asserting their sovereignty against these destructive federal monetary policies. As Washington, D.C., bureaucrats double down, now is time for the Idaho Legislature to protect their constituents now and into the future.
