The bill allowing the use of bitcoin for transaction in California has entered into force.
Bitcoin can now be used for making transactions in the state of California, the USA. The finance bill, which was approved by Governor Jerry Brown in 2014, is now coming into force. Until now, the US dollar was the only allowed currency.
The bill was authored by Democratic assemblyman Roger Dickinson, reversing a previous law that claimed the use of other currencies, except the U.S. dollar, to be illegal in the USA.
The legislation is a major milestone in the history of bitcoin. It is aimed at allowing the use of alternative currencies to US dollar across the state. In addition to bitcoin, the bill allows the use of other digital currencies, including dogecoin and litecoin.
California is known to be the technology center of the country and now, with the bitcoin adoption, it became one of the most bitcoin friendly states. Most of the US bitcoin startups in the country are now based in California. The Silicon Valley is headquarters for 32 bitcoin companies.
Meantime, stance on bitcoin is different in other states that reinforce digital currency regulation, thus limiting its further growth. The government of the New York City has recently banned the Bitcoin decentralization block party, which was created by film production firm Cut Rush Creative Labs and GMT Tavern restaurant to demonstrate people “creative ways to use a coin.”
The New York City community board rejected the party, calling it a “loose group of individuals who are supporters of decentralized currencies like Bitcoin to promote its use, … who primarily live in Brooklyn and have no ‘indigenous relationship’ to the area.”
Founded by Fletcher Starkey, CDXX, a bar and grill located San Francisco, started accepting bitcoin payments since its opening in 2014.
When speaking to CoinTelegraph, Starkey said he supports the government’s decision to make was the digital currency legal: “California is leading the charge toward a more secure and simple payment system, which benefits customers and merchants, instead of credit card companies.”
He also added that CDXX has “plenty of tech savvy consumers and business owners, and many open-minded entrepreneurs. I wish everyone of my customers would trade in their Visa for Bitcoin.”
With the new legal status of bitcoin, more merchants and companies are expected to accept the digital currency in the near future. Besides, the bill will increase people’s awareness and can turn bitcoin into the US dollar alternative soon.