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Arizona May Adopt Bitcoin as Legal Bid by DailyCoin



Arizona May Adopt Bitcoin as a Legal Bid
  • A bill presented by a Republican senator to the state legislature proposes the use of BTC as a payment method.
  • If the proposal is approved by state legislators, it will still have to be approved by the US Congress.
  • The federal government shows no sign of wanting to ban cryptocurrencies, despite the fact that the matter of regulation is seen as an issue of high national interest.

A bill for legal tender (BTC) in the state of Arizona has been submitted to the state legislature by Senator Wendy Rogers (NYSE:), who has been promoting cryptocurrency adoption for some time.

The Arizona Legislature will need to assess whether the measure is consistent with federal law and the United States Constitution.

The proposal was presented by the Republican lawmaker last Tuesday and has a second reading on Wednesday, pending a final vote in the state senate.

For it to become law and for Bitcoin to be legal tender in that state, it must not only have the approval of the Arizona Legislature but also the US Congress, as it is its exclusive jurisdiction.

“The mint provision of the Constitution means that the power to determine what is legal and illegal tender in the United States rests with Congress,” said Attorney Preston Byrne, a partner at law firm Anderson Kill. “If issued, [the bill] much of it will be symbolic,” he added.

On Flipside

  • The presentation of this proposal coincides with a new call by the International Monetary Fund (IMF) to El Salvador to repeal the Bitcoin Law.

The credit union believes that cryptocurrencies can bring serious risks to the Central American nation’s economy and put it on the brink of bankruptcy due to its high volatility.

However, the US position on BTC and other cryptocurrencies has so far been a lenient one. It is likely that in the next few days the government will issue an executive order to regulate crypto assets that it considers a matter of national security.

Neither the federal government nor Congress has shown signs of wanting to ban the use of cryptocurrencies. In contrast, both Federal Reserve Chairman Jerome Powell and Securities and Exchange Commission (SEC) Director Gary Gensler offered favorable comments.

Cryptos: Currency or form of money?

“Besides legality, it raises the question of whether digital assets are really ‘currency’ or ‘money’,” said Steve Gannon of law firm Murphy and McGonigle. debate on this issue. Another question the lawyer asked was, for what purpose does the state accept digital assets as “legal tender.” Will it simply be an alternative payment instrument or will it have a broader financial reach?

According to Byrne, even if the bill passes and becomes law in Arizona, the impact of BTC use on the state’s economy will be limited.

He even believes that Arizonans cannot be “forced to accept bitcoin in an acceptable way”. “Arizona could certainly pass a law like this and the state government could choose to accept Bitcoin as payment for Arizona taxes, but this will not change the legal treatment of Bitcoin is property from a federal tax perspective,” Byrne explained.

Why should you care?

  • Senator Rogers, who sits on the Senate Cryptocurrency and Blockchain Research Committee, has promised to make Arizona a crypto-friendly state.
  • As enthusiasm for BTC grows and the need to attract investment from the crypto industry grows, other states could follow in Arizona’s footsteps and discuss the benefits of cryptocurrencies.

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