[Centurion2000]

This was what I was looking for

Article I
Section 10.
No state shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts ; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility.

[unixfox]

Your right, but that was a long time ago. Time to move on, nothing to see here.

[steve50]

make anything but gold and silver coin a tender in payment of debts

Looks like the states are forbidden by law to accept fiat. At $10 an oz they got a pretty good markup built in, last I saw silver was about $4.60

[Oberon]

Your quote would seem to grant a specific exemption for gold and silver coin.

[Khepera]

Is the satae doing this or just some people who decided they would trade other forms of currency? If individules want to make this sort of agreement then it seems perfectly legal.

[dark_lord]

Well, it is being issued by a private company. So not unconstitutional. Actually not a big deal either. When credit cards were new, people might have wondered if they were "creating currency" or "unconstitutional" as well. But they weren't and aren't.

However, I don't see the point, since nobody is making money off of this. And you have to trust that the private company will indeed "buy them back". If that company goes under, or takes the money and runs, then people and merchants are stuck with the paper. Or maybe the company figures they will take people federal dollars in exchange for "Liberty" dollars and just bank the federal dollars and earn interest. When someone wants to exchange the Liberty dollars back for federal dollars, they do so. Which means if enough people signed up for this, the company could make money and survive...but what is the point? Why would people want these darn "dollars" anyway?

[Protagoras]

silver coin a tender in payment of debts

Sounds like perfect compliance to me. :^}