A New Bill Proposes To Make Bitcoin Legal Tender In U.S. State Of Arizona
A newly introduced bill by Senator Wendy Rogers proposes to make bitcoin a legal tender in the U.S. state of Arizona.
The new bill aims to add bitcoin to the list of financial instruments considered legal tender in the state of Arizona and make the peer-to-peer (P2P) digital currency a lawful medium of exchange, enabling citizens to pay debts, public charges, taxes and dues with Bitcoin.
If enacted, all financial transactions that are currently done in U.S. dollars could most likely be done in bitcoin in the state, including payments and payouts. Citizens could opt to receive their salaries directly in bitcoin and companies would have complete freedom as to how and when they could use bitcoin.
The bill specifically says “Bitcoin” without referring to other cryptocurrencies, calling it the “decentralized peer-to-peer digital currency…maintained on the Bitcoin blockchain.”
Arizona stands in line to become the first U.S. state to recognize bitcoin as legal tender if the bill moves forward and gets approved.
However, some have pointed out that the bill is unlikely to succeed for legal reasons. Article I, Section 10, Clause 1 of the U.S. Constitution explicitly prohibits states from declaring assets legal tender except gold or silver coin:
“No State shall […] make any Thing but gold and silver Coin a Tender in Payment of Debts.”
In addition to possible legal issues, the reputation of Senator Wendy Rogers as a far-right politician recently placed at the top of an extremist rhetoric list, which may slow down support for the bill given her other views.
The United States does not consider Bitcoin legal tender. Another recent draft bill called ‘America COMPETES Act of 2022’ introduced in the United States has a provision that “would essentially give the Treasury Secretary unchecked and unilateral power” to ban cryptocurrency transactions.
Also, the IRS considers Bitcoin and other cryptocurrencies a “medium of exchange, a unit of account, and/or a store of value…[which] does not have legal tender status in any jurisdiction.”
El Salvador last September became the first country in the world to make bitcoin a legal tender after President Nayib Bukele presented a bill that would bring BTC alongside with U.S. dollars, the other currency with the status of legal tender in the country.
