According to reports California Governor Jerry Brown on Saturday signed a bill that clears away possible state-level obstacles to alternative currencies like Bitcoin. The new law now repeals an outdated California law that prohibited commerce using anything but USD.
Roger Dickinson, a Democratic member of the California State Assembly, is an advocate of Bitcoin. Roger Dickinson drafted the bill in the manner that it is going to clear all the obstacles in front of the digital currency and make it a legitimate currency like the USD. He said that it reflects the popularity of forms of payment already in use in California. Several companies and outlets have started accepting digital currencies like Bitcoin in the state in the last couple of years.
ForexMinute had earlier reported that some businesses like Starbucks Stars also offer reward points for the customers who pay in Bitcoin. However, as the existing law was technically considering Bitcoin illegal, the new law was being felt necessary. The latest bill is aimed to update to currency law in the nation’s most populous state.
In a press release Roger Dickinson says that bill AB 129 addresses alternative currencies which provide provisions wherein modern methods of payment which have expanded beyond cash or credit card have been accepted formally. AB 129 has now repealed an outdated restriction on the use of “anything but the lawful money of the United States.”
Law to Give Legitimacy to Bitcoin
So far, there was no clarity about the legal status of Bitcoin and other similar digital currencies; however, as the literal meaning of the restriction indicated that anyone using alternative currency was violating the law, apprehensions were aplenty. Now that the latest law clarifies that even digital currencies are like any other currency, the fear would be set aside.
The California Governor said that in an era of evolving payment methods, from Amazon Coins to Starbucks Stars, it is impractical to ignore the growing use of cash alternatives. He also added that this bill is intended to fine-tune current law to address Californians’ payment habits in the mobile and digital fields.
The recognition of Bitcoin as a currency like the USD would help the clients as well as the digital currency as it will bring legitimacy which is quite fundamental for it. It will also boost confidence among the investors who fear about their losses, particularly after the huge losses in Mt. Gox collapse.
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