The proposed "Michcoin Act" aims to create a comprehensive framework for the issuance of gold and silver specie, as well as a digital currency called "Michcoin," which will be backed by these precious metals. The bill establishes the Michigan bullion depository within the Department of Treasury, which will act as the custodian and administrator of the bullion and specie. It outlines the responsibilities of the state treasurer, who will oversee the issuance of both gold and silver specie and the digital currency, ensuring their use as legal tender and enabling electronic transfers. The state treasurer is also authorized to contract with private vendors for the establishment of the digital currency and the creation of a digital wallet.

Additionally, the bill creates a pooled depository account to hold the gold and silver specie and bullion, which will back the digital currency, and details the processes for issuance and redemption of the digital currency. It establishes a fee structure for these processes, with proceeds directed to the general fund and the Michigan bullion depositary fund. The legislation also outlines the management of the Michigan bullion depositary fund, including the purposes for fund expenditures and the authority of the state treasurer to set fees related to depository accounts. Furthermore, it mandates annual reporting by the state treasurer on the depository's status and operations, and establishes the role of depository security officers with law enforcement powers to ensure the security and compliance of the depository's operations.