Bitcoin Legal Tender
California is the sunny state located on the West Coast of the United States. What many people may not know, it is also the state that has the 12th largest economy.
The state has currently set in motion what could bring about great advancement for bitcoin and other digital currencies. The California lower house has unanimously agreed and passed the bill, AB 129, declaring bitcoin and other digital currencies as a legal tender in the state.
The amazing thing about this turn of events is that the votes in favor of the new proposal was unanimous with seventy five votes for and zero votes against the bill.
AB 129 was first introduced by California State Assembly member and Banking and Finance Chairman, Roger Dickinson, last January. On the 6th of February, it was sent to the Senate Banking and Finance Committee for revision of its possible monetary impact before it moved on to the Senate. Ab 129 would formally legalize a variety of alternative currencies to the United State dollar that happen to be already in use.
“This bill makes clarifying changes to current law to ensure that various forms of alternative currency such as digital currency, points, coupons, or other objects of monetary value do not violate the law when those methods are used for the purchase of goods and services or the transmission of payments,” mentioned in the bill.
When the bill enters the Senate, it needs to pass three states. These are the Senate Policy Committee, Senate Fiscal Committee, and lastly the Senate Floor. But, on the other hand if at any given point the bill is amended in the Senate, it will need to go back to the Assembly. This could make the passing of the bill take much longer. It is expected that the bill will easily pass the Senate as well.
If the bill is approved by the Senate, up next in the ladder would be to get approval from the State Governor who decides whether the bill becomes law.
Bitcoin’s ‘Legal’ Future
The passing of the bill could possibly be one of the best highlights for bitcoin in recent times. With the near collapse of Mt. Gox and its introducing a new wave of panic in the bitcoin community, this comes as much needed good news. Currently, there are many governments and banks collectively speaking out against Bitcoin and it’s use; warning their people against it’s potential risks. While there is a minority of politicians and the innovators in the financial industry who understand the importance of Bitcoin and it’s need to be mainstream.
How will the future of Bitcoin’s Legal status look like as we head deeper in to the year 2014? One can be hopeful for good but only time will tell.
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