June 28, 2022

A 2022 Bitcoin Bill now allows Californians to pay state services with crypto

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As the political world tries to catch up with the expansion of digital currencies, a bill has been introduced to make Bitcoin specifically legal in the state of California. It would let citizens of the state pay for their state services using cryptocurrency. The bill seems to focus exclusively on Bitcoin for now, so users and owners of Tether may have to wait until later.

The bill was introduced by Sydney Kamlager, a state senator. Another effort by other political advisors in the capital sought to legalize Bitcoin as acceptable tender in the state.

These state-level pushes are nothing new in regard to the adoption of Bitcoin. Colorado has already announced that it’s going to start taking Bitcoin in the summer for state fees and taxes. A state legislator in Arizona has also introduced legislation in the Grand Canyon state to accept Bitcoin as a legal tender.

Such notable efforts reflect a broader movement of politicians at the state level latching onto the Bitcoin trend throughout society. The California bill would let residents of the state pay most state agencies in digital currency for their services when payments are required. Passing the bill would require the support of both houses in the state’s bicameral legislature before being signed into law by the governor. How long this process might take is anyone’s guess. There’s also no telling whether or not this bill will actually have a fair chance of becoming law. Still, its sheer introduction is notable.

The different push to legalize Bitcoin as acceptable tender across the state is the work of two different people. One of them is Dennis Porter, a known advocate of Bitcoin. The other is Ian C. Calderon, who once served in the state assembly of California as the majority leader.

State-level efforts to force the adoption of Bitcoin or any digital currency as legal tender do face an uphill legal battle. Even if they are passed, there might be court challenges at the federal level. The very Constitution of the United States prohibits states from determining their own currencies.

The Colorado state government is willing to start accepting Bitcoin payments for state services at a growing volume throughout the year. However, the state will not involve itself in cryptocurrency holdings at any point. Instead, it will convert digital currencies automatically into United States dollars before the funds are deposited into any state coffers. Still, residents of Colorado will be able to start paying their state-level taxes with Bitcoin soon enough.

The federal government has been very slow to adapt to the explosion of digital currencies across society. The IRS itself is only starting to truly lay out specific tax rules for those who have invested in cryptocurrency. State governments are perhaps leading the way on at least partial acceptance of it. While many in leadership positions still have concerns about volatility, consumer protections, and even some of the very fundamentals behind blockchain technology, state governments in some places are willing to do what it takes to capture badly needed revenue to keep operations moving for their citizens.

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  1. Ben Metcalfe says

    Quite interesting news for cryptocurrencies, which, by the way, few people covered. Also, rumors that pension funds may allow the purchase of bitcoin, something does not pay off on the price of the main cryptocurrency. Perhaps a lot of people are asking themselves is it the right time to invest in bitcoin? Because the price of the last ATH has already gone down by 45% and there is no telling how long the fall of Bitcoin and the whole cryptocurrency market will last, given the overall geopolitical situation in the world.

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