Arizona: New Bill Seeks to Recognize Bitcoin as Legal Tender

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Arizona: New Bill Seeks to Recognize Bitcoin as Legal Tender For Hannah Perez

Senator Wendy Rogers introduced a bill that would allow Arizonans to use Bitcoin to pay for debt, public charges, taxes, and more.

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In the United States, Arizona could adopt Bitcoin as its legal tender, if a new bill is passed.

State Senator Wendy Rogers has introduced a legislative proposal, numbered SB1341, which would seek to amend the Arizona Revised Statutes to include Bitcoin as a form of legal tender.

The project would seek to add the main cryptocurrency to the list of legal tender currencies in that state, allowing its citizens to pay debts, public charges, taxes and other fees with Bitcoin.

Arizona: New Bill Seeks to Recognize Bitcoin as Legal Tender
Image of the Arizona Bitcoin Bill

The presentation mentions Bitcoin specifically without referring to other digital currencies. The document identifies her as the “decentralized peer-to-peer digital currency… held on the Bitcoin blockchain“, as reported CryptoBriefing.

It also draws attention to the mining of Bitcoin, noting that “the new units… are generated by the computational solution of mathematical problems” and warns that Bitcoin It works outside of central banks.

Arizona Bitcoin Law Could Face Legal Challenges

In the opinion of some observers, it is highly unlikely, and even questionable, that the bill will succeed due to legal reasons. The US Constitution expressly prohibits individual states in the country from creating their own legal tender.

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No State may enter into treaties, alliances or confederations; grant marquee and retaliation cards; mint coin; issue letters of credit; convert into currency for the payment of debts anything other than gold and silver“, reads in the Article I, Section 10, Clause 1 of the Magna Carta.

“The Coinage Clause of the Constitution means that the power to determine what is and is not legal tender in the United States rests solely with Congress.”, explained Preston Byrne, a partner at the Anderson Kill law firm, to Blockworks. If enacted, [el proyecto de ley] would be largely symbolic”.

The lawyer added that he sees it as unlikely that, if passed, the legislation would have a significant impact on the use of Bitcoin In this state. For example, it does not consider that the regulations can change the “legal treatment of bitcoin as property from a federal tax perspective”. He also said that he does not believe that he can force his citizens to accept Bitcoin of a “a constitutionally acceptable manner“.

More generally, the United States does not consider currency to be legal tender. Bitcoin. The Internal Revenue Service (IRS) believes that Bitcoin and other cryptocurrencies are a “medium of exchange, a unit of account and/or a store of value… [que] does not have legal tender status in any jurisdiction“.

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On the other hand, the proposal could also find rejection among legislators. The bill must pass the Arizona State Senate and House of Representatives before Gov. Doug Ducey can sign it into law. Rogers, a Republican who took office in early 2021, is a controversial figure who has ties to the anti-government group Oath Keepers and who praised the conspiracy theory group QAnon, according to CoinDesk.

Arizona seeks to be a crypto-friendly state

Senator Rogers had already promised in September that she would work to make Arizona a crypto-friendly state. She was appointed a member of Blockchain and Cryptocurrency Study Committee, as announced on Twitter.

how did he make known Blockworks, andThe committee is made up of members of the Arizona State House and Senate, as well as members and advocates from the digital asset industry. The group seeksreview data on the reach of blockchain and cryptocurrencies across the country” and determine how technology can influence Arizona’s existing financial infrastructure, according to documents of the government.

Rogers noted on his Twitter account that the bill was drafted in December and that he has introduced “various cryptocurrency bill proposals“. “I’ll try to post them when I have a moment“, he added.

El Salvador introduced a law last year that recognizes Bitcoin as legal tender along with the US dollar. So far, it is the only country in the world that has made cryptocurrency an official currency. Rogers did not comment on whether he has been inspired by this decision to create his proposal.

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Article versioned by Hannah Estefanía Pérez / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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