Bitcoin as Legal Tender in Arizona

Bitcoin as Legal Tender in Arizona

State Sen. Wendy Rogers (R-AZ) has introduced a set of bills that would make bitcoin a legal currency in Arizona and let state agencies accept it as payment.

The proposed law wants to make bitcoin a legal form of currency in Arizona so that it can be used to pay off debts, taxes, and other bills.

This would mean that all transactions that are currently done with U.S. dollars could be done with bitcoin, and people and businesses would have the option to use bitcoin as they see fit.

The legal tender bill defines bitcoin as "the decentralized, peer-to-peer digital currency in which a record of transactions is kept on the Bitcoin blockchain. New units of currency are created by the computational solution of mathematical problems, and that works without a central bank." Quite a mouthful.

This is the second time Sen. Rogers has put forward a bill to make bitcoin a legal form of payment in her state. In January 2022, she tried to pass the same change, but it died in the second reading. If at first you don't succeed, right?

Even though it seems unlikely that the bill will pass this time, the fact that El Salvador has made bitcoin legal tender has been good for growth and investment in the country.

Recent actions in Texas, New Hampshire, Missouri, and Mississippi show that more U.S. states are becoming interested in bitcoin and its benefits.

Should a state officially make Bitcoin legal tender, federal implications will come into question, specifically around tax treatment on Bitcoin transactions.

One thing is certain: as more people buy and use bitcoin, these kinds of bills will become more likely to pass. It's all about the reps.

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