TL;DR Breakdown
- A state senator introduces a bill to make Bitcoin a legal tender in Arizona.
- Federal law puts hurdles and complications in its passing.
- The US Constitution does not allow individual states to create their own legal tender.
Bitcoin and other cryptocurrencies are making their way into the economic structure of different countries. Therefore, several legislators are moving to make Bitcoin a legal tender to reap more benefits from the use of the leading crypto token. The Developing world has shown more interest and rapid progress in this regard. This is why El Salvador became the first country in the world to accept Bitcoin as a legal tender.
Since the development made in El Salvador, several countries have mapped the possibility of accepting Bitcoin as a legal tender. In a recent development, a state senator from Arizona, Wendy Rogers has moved to initiate a bill that would potentially make Bitcoin a legal tender within the State. Even though the introduction of the bill is a major development, there are certain complications in implementing anything of this sort in the State.
The proposed bill goes in contradiction with the Federal US Law
The bill was initially proposed by Wendy Rogers on Tuesday, seeking to add Bitcoin as a legal currency in Arizona. Another reading was held on Wednesday on the Senate floor over the bill. However, it has not been decided whether a vote will be held over the bill or not. The date for the bill will be decided once it gets selected for the vote.
However, the Federal Constitution of the United States makes it more challenging for the State to pass the bill. Many cryptocurrency experts believe that the Federal Law is not suited to comply with such amendments. With the Coinage Clause, the exclusive right to deploy such bills that decide on legal tenders rests with Congress. Thus, any State bill will be symbolic in this matter.
Will the bill influence Bitcoin usage in Arizona?
Experts have also stated that there is still confusion on whether cryptocurrencies are digital assets or actual forms of money. Thus, the legality of Bitcoin will come second to such technical questions. However, throughout history, whenever changes of such nature have been proposed, they were shunned down by Congress. The Arizona bill might go down the same road.
Moreover, even if it is taken into consideration and is passed from the Senate upon voting, it is unlikely to have a major impact on Bitcoin usage in the country. If Bitcoin is used for payments and transactions within the state, then it will have a limited use case. Also, it could be used as payment for Arizona taxes. However, the legal status or treatment of Bitcoin will not be altered with this bill.
Senator Wendy Rogers had previously promised to make Arizona a crypto-friendly state. Thus, this was an extension of her declared plans when she was appointed to the Blockchain and Cryptocurrency Study Committee. The committee aims to dig deep into the scope, future, and possibilities of the blockchain and cryptocurrency concept throughout the country.
Nonetheless, it is yet to be seen how the bill folds out in the State Senate, and how the Federal Law responds to it. However, Senator Rogers has not yet commented on the bill. The bill will hold significance in the coming days, and might also influence the decision-making of US-based crypto investors in relation to Bitcoin and other digital coins. Since news from the US also affects the mindset of the rest of the world, the bills passed here hold immense importance for the world economy.
