Arizona State Senator Wendy Rogers has submitted bills to the Senate that would make Bitcoin a legal currency in the state. The bill wants government organizations to use cryptocurrencies as a common means of transmitting and receiving payments, according to a report by Interesting Engineering.
(Photo : STEFANI REYNOLDS/AFP via Getty Images)
The Bitcoin logo is seen on a Coinstar cryptocurrency ATM at a grocery store in Washington, DC, on January 19, 2023.
Acceptance of Cryptocurrency Bill
Arizona will be the first state in the US to formally recognize Bitcoin as a legal tender if the proposed bill is passed into law.
State authorities would be authorized to accept bitcoin as payment in addition to people and businesses using it to settle debts, taxes, and other finances.
It is worth noting that Bitcoin's value has dropped by 60% from its record high in 2022 - a year that has not yielded desirable effects on the crypto market. However, the new bill may indicate that some still have faith in Bitcoin's future.
Bitcoin may also be used for transactions that are now made in US dollars. The proposed legislation's success could mean a big step toward the general public acceptance of bitcoin as a valid form of money.
The "Acceptance of Cryptocurrency Bill" states that bitcoin will serve as a decentralized, peer-to-peer digital tender, indicating that it runs on a computer network instead of being managed by a centralized entity such as banks or government agencies.
The Bitcoin blockchain is a public ledger that stores all transactions made on the Bitcoin network. By resolving challenging mathematical puzzles, a process known as mining creates new bitcoin units.
The network's integrity is guaranteed by the mining process, which also regulates the creation of bitcoins.
Adopting Bitcoin
According to the proposed legislation, state entities can enter into agreements with cryptocurrency issuers to accept their currency as payment for debts such as rent, fees, and other financial responsibilities.
Senator Wendy Rogers has presented legislation twice to make bitcoin a recognized mode of payment in Arizona. However, the first attempt in January 2022 did not succeed.
El Salvador has already adopted bitcoin as legal cash, demonstrating the country's faith in the crypto's potential for development. Ukraine also legalized bitcoin and other cryptocurrencies in 2022.
Several states are also making strides to adopt cryptocurrencies such as New Hampshire, Mississippi, Texas, and Missouri. The proposed legislation by Senator Rogers may just open the door for similar bills in the future.
Interesting Engineering notes that Bitcoin is more resistant to government manipulation because it operates without a central bank and is not under the same regulations as conventional fiat currencies.
Arizona would be moving closer to accepting and acknowledging the decentralized bitcoin and other cryptocurrencies with the passage of this measure. But of course, this remains to be a prospect until the Senate approves the bill.
Related Article: CES 2023: Can Crypto and Blockchain Encourage a Greener Future? Here Are a Few Initiatives to Combat Climate Crisis
