A bill for an act relating to the investment of public moneys in digital assets and precious metals.

House File 246, also known as the 'Inflation Protection Act,' is a bill introduced in the Iowa General Assembly that proposes allowing the state treasurer to invest up to 5% of public funds from the general fund, cash reserve fund, and economic emergency fund into digital assets (like cryptocurrencies) and precious metals (such as gold and silver). The bill outlines specific methods for securely holding these investments, including using secure custody solutions or qualified custodians, or as exchange-traded products.

Supporters of HF246 argue that diversifying state investments into digital assets and precious metals could provide a hedge against inflation and economic volatility. They believe that such investments may offer higher returns and protect public funds from the devaluation associated with traditional fiat currencies.

Critics of HF246 express concerns about the volatility and regulatory uncertainties surrounding digital assets, which could pose risks to public funds. They also highlight the potential challenges in securely storing and managing these investments, as well as the lack of historical data on their long-term performance compared to traditional investment vehicles.