Arizona Bills Aim to Make Bitcoin Legal Tender

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(Kitco News) – Arizona State Senator Wendy Rogers has for the second time introduced a package of bills to the state legislature to make Bitcoin (BTC) legal tender in Arizona and allowing state agencies to accept BTC as a method of payment.

If bitcoin is recognized as a legal form of currency in the state, citizens could use it to pay their debts, taxes, and other financial obligations the same way they would the US dollar.

In Bill SB 1235 submitted by Rogers, legal tender is defined as “any medium of exchange authorized by the Constitution or Congress of the United States for the payment of debts, public charges, taxes, and duties; Cash issued at any time by the US government; any other species which a court of competent jurisdiction declares by final and without appeal order to be within the jurisdiction of the State to give legal tender”. The term “species” specifically refers to coins with precious metal content.

Bitcoin is the only crypto that Rogers is trying to have legal tender.

“Bitcoin means the decentralized, peer-to-peer digital currency in which a record of transactions is kept on the Bitcoin blockchain and new monetary units are generated by the computer solution of mathematical problems and which operates independently of a central bank”, said the text of the bill read.

In the second bill, SB 1239, Rogers seeks to change state laws to ensure that “a state agency may enter into an agreement with a cryptocurrency issuer to provide a method for accepting the cryptocurrency as a method of payment for fines, civil penalties or other penalties, rents, rates, taxes, fees, charges, revenues, financial obligations and special assessments to pay any amount owed to such agency or state.

Cryptocurrency has been defined as “any form of digital currency in which encryption techniques are used to regulate the generation of monetary units and verify the transfer of funds, operating independently of a central bank, including Bitcoin, Ethereum , Litecoin and Bitcoin Cash”.

Senator Rogers previously introduced a similar amendment in January 2022, but that bill did not make it past second reading because it was being discussed at a time when the crypto market was in decline and entering the mainstream. winter of crypto.

If these new amendments are passed, Arizona would become the first state in the United States to adopt Bitcoin as its official currency.

States have considered bitcoin as an acceptable form of payment for some time now as the crypto ecosystem gains more adoption. In September 2022, Colorado became the first state to allow the use of Bitcoin to pay taxes, and Utah was also on track to do the same before the crypto market downturn put those plans to rest. on hold.

Many states – including Texas, New Hampshire, Missouri and Mississippi – have also introduced bills to establish regulations around Bitcoin mining to capitalize on the financial benefits the activity presents. .

The subject of states adopting Bitcoin and other cryptos as legal tender will certainly face challenges in the future, as the US Constitution specifically prohibits states from creating their own legal tender.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.

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