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California’s Bill to Make Bitcoin ‘Lawful Money’ Reaches the Governor

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by Konstantin Lazarev · 2 min read
California’s Bill to Make Bitcoin ‘Lawful Money’ Reaches the Governor
Photo: Steve Rhodes/Flickr

A bill to legalise the use of cryptocurrencies in California is now heading to the governor’s desk for approval.

California Assembly Bill 129, a bill that would not prohibit the use of the digital currencies ‘lawful money’ in the US state, will now go to California Governor Jerry Brown where it will become law after a required approval.

The news appears just weeks after the California Senate Banking and Financial Institutions Committee voted in favor of AB-129.

The AB-129 was authored by Assembly Member Roger Dickinson would recognize digital currencies, as well as other forms of value such as points and coupons, as lawful alternatives to the US dollar. However, the residents of the state are not required to accept lawful money and still can use US dollar.

Mr. Dickinson explained not a long time ago, that the Californian law gives consumers the ability to continue using a variety of common payment methods, and what is more the law remove penalties currently on the books for their usage.

Roger Dickinson specified:

“In an era of evolving payment methods, from Amazon Coins to Starbucks Stars, it is impractical to ignore the growing use of cash alternatives. This bill is intended to fine-tune current law to address Californians’ payment habits in the mobile and digital fields.”

The first signs of AB-129 became public in February, when the bill had passed the California Assembly, and was on its half way to become an active law.

Since that time the AB-129 passed three stages in the Senate before reaching the California Governor Jerry Brown. The bill got approved by the Senate Policy Committee, Senate Fiscal Committee, and in the end, the Senate Floor. Nevertheless, any revisions would necessitate another vote in the Assembly.

After getting approved in the Senate and Assembly, the bill will be send to the Governor Brown to get the final approval to become law.

Bitcoin in California

The news will attract a big number of people  in the digital currency ecosystem, as California state is always full bitcoin activity.

According to a recent statistical analysis by CoinDesk, 40% of bitcoin professionals are from California, with many of them based in Silicon Valley.

The AB-129 is a reflection of the government’s neutral approach to bitcoin regulation.

 

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Konstantin Lazarev
Co-Founder & CIO Konstantin Lazarev

Konstantin has always been at the forefront of the global virtual currency scene since first discovering cryptocurrencies the same year that Satoshi Nakomoto created bitcoin in 2009. Konstantin is the owner of a number of small businesses in trucking and mobile development, and co-founded CoinSpeaker in 2014. He graduated from Belarusian State University in 2009 with a degree in Mathematics and Mechanics. You can contact Konstantin via [email protected]

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