Could Arizona Accept Bitcoin As Legal Tender?

February 3, 2022 9:29 pm Comments

A state senator from Arizona recently proposed a new bill that could make Bitcoin legal tender in the state of Arizona although many expect that the bill would face significant opposition.

With that being said, if it were to pass, it would allow Bitcoin to be used just like cash to pay for bills, taxes, and everyday purchases.

The bill came from Republican state senator Wendy Rogers of Arizona and the purpose is to allow Bitcoin as an alternative medium of exchange in addition to the existing traditional financial systems in use today.

Kitco reports:

Bill 1341 was introduced by the Republican State Senator Wendy Rogers of Arizona.

The measure aims to authorize Bitcoin as a means of payment on “any medium of exchange that is authorized by the United States Constitution or Congress for the payment of debts, public charges, taxes and dues.”

The bill states: “Bitcoin means the decentralized, peer-to-peer digital currency in which a record of transactions is maintained on the Bitcoin blockchain and new units of currency are generated by the computational solution of 21 mathematical problems and that operates independently of a central bank.”

It is unlikely that this bill will pass or be effective since the U.S. Constitution prohibits states from creating their own currencies. But it will trigger a debate on the topic.

The bill is not expected to pass, but it will serve as a meaningful first step to gather awareness and could very well serve as a catalyst for future bills to get passed that push for crypto to become legal tender in some capacity at the state level.

If more states jump and start moving in this direction, it could allow for crypto like Bitcoin to be used as payment for taxes even if it is not yet approved at the federal level.

The push here follows the recent move from the country of El Salvador which had recently adopted and accepted Bitcoin to be used as legal tender within the nation.

Nasdaq reports:

El Salvador in September became the first country in the world to make bitcoin a lawful currency after President Nayib Bukele presented a bill that would equate BTC to U.S. dollars, the other currency with the status of legal tender in the Central American country.

Allowing the freedom to transact with and store wealth in an incorruptible form of money that is also more sound than the dollar is a net positive to the state of Arizona and its citizens.

Similar intentions are brewing in Texas. Governor candidate Huffines said he will try and make bitcoin legal tender in his state if he wins the election, as he says “Texas must stop the federal government from shutting down the industry and discriminating against Bitcoin holders.”

As this happens more and more, it could be very likely that there will be another country like El Salvador that will make Bitcoin legal tender as well.

What might essentially take place here in the future could be something like game theory where places that don’t accept Bitcoin could start seeing economic capital and value start to exit  to other places that do accept Bitcoin.

As a result, many countries may need to accept Bitcoin if they don’t want to be left out of the technical revolution and miss out on the economic benefits.

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