The proposed legislation seeks to recognize bitcoin as a legal form of currency in Arizona, allowing it to be used to pay debts, taxes and other financial obligations. This would mean that all transactions that are currently done in US dollars could potentially be done with bitcoin, and individuals and businesses would have the flexibility to use bitcoin as they see fit.
Specifically mentioning bitcoin alone, the legal tender bill defines bitcoin as “the decentralized, peer-to-peer digital currency in which a record of transactions is kept on the bitcoin blockchain and new monetary units are generated by computer solution of mathematical problems. and which operates independently of a central bank.
The acceptance bill is broader, stating that “A state agency may enter into an agreement with a cryptocurrency issuer to provide a method of accepting cryptocurrency as a method of paying fines, penalties civil or other penalties, rent, rates, taxes, fees, charges, revenues, financial obligations and special assessments to pay any amount owed to such agency or state.
Although it may seem like there is little chance that the bill will pass this time, El Salvador’s adoption of bitcoin as legal tender has proven to be a boon for growth and investment in the country. Recent actions in states like Texas, New Hampshire, Missouri and Mississippi all point to growing US state interest in bitcoin and its benefits. As bitcoin adoption strengthens, the likelihood of such bills being passed will only increase.