A law has been presented in Arizona that would allow the state to accept bitcoin as legal cash. If passed, the law would oblige citizens and companies in Arizona to accept bitcoin as a form of payment in addition to the US currency.
However, because the United States Constitution currently prohibits states from forming their own legal cash, the chances of this law passing are slim.
Senator Wendy Rogers, a Republican, has introduced legislation to alter the state’s list of legal money to include bitcoin. This means that the decentralized peer-to-peer digital money might be used to pay for debts, government fees, taxes, and dues.
SB 1341, the proposed bill, must pass both the Arizona state senate and house of representatives before being signed into law by current governor Douglas Anthony Ducey.
Senator Rogers’ bill comes at a time when a number of nations across the world are debating whether or not to recognize bitcoin as legal cash, following El Salvador’s lead in September. Interestingly, Don Huffines, a gubernatorial candidate in the state of Texas, has lately committed to make bitcoin legal tender if elected.
If the amendment passes, Arizona will become the first state in the history of the United States to embrace the most popular cryptocurrency as legal cash.
However, considering that the United States Constitution expressly prohibits individual states from designating assets other than gold and silver as legal money, it appears unlikely that this law will be implemented.
Aside from the potential constitutional issues, the bill comes as reports surface that the Biden administration is working on an executive order that would require federal agencies to assess the threats and opportunities provided by cryptocurrency, calling it a national security issue.
It’s unclear what effect this order, which is scheduled to be issued as soon as next month, will have on the Arizona Senator’s bitcoin plans.