I've been following this guy for a few years now and his basic idea is good, although I think this part of it would be a mistake:

HSP: The institution giving the coin a quoted monetary value would not be the Mexican government, it would be the Central Bank, in obedience to Legislation passed by the Mexican Congress, which has the constitutional authority to instruct the Central Bank on this matter.

This would require an act of Congress, which would be an uphill battle, to say the least. But why bother with this? We already have standard weights and measures and independent mints. Let them issue the coins. Why involve the government at all? This is a variation on Fekete's free gold argument. Let anyone who mines silver take their dore to a private mint, which can then issue 999 coins. As far as conversion to pesos, that's easy. Who doesn't have a cell phone these days? One call gets you the current price, and there you are... transaction complete. For that matter, why not issue small denomination silver coins and transact business entirely in silver?

Clearly there's some nuances here that would need to be worked out, but the basic principle of keeping money out of the hands of government should be central to any sort of free money arrangement, otherwise it isn't really free.

The fly in the ointment here is the futures market. You'd have to shut that down completely, else you'd undermine the silver to currency ratio, which in the absence of speculation would be a steadily rising straight line, with only minor fluctuations, rather than the wild fluctuations we've seen that undermines the exchange ratio.

Industrial use also throws a wrench into the works, especially if predictions of increased future consumption are anywhere near accurate.

Of course there's still the problem of hoarding. You'd have to find a way to keep silver money circulating at the same rate as pesos. Maybe you could mix in a little uranium.... that would keep it moving! Talk about money burning a hole in your pocket...heh.

ebear