By becoming a recognized legal tender in Arizona, Bitcoin will be able to be used for settling debts, taxes, and other financial obligations. As a result, both individuals and businesses would have the option to utilize Bitcoin however they see fit for any transactions that are currently made in U.S. dollars.
The legal tender bill states that Bitcoin is a “decentralized, peer-to-peer digital currency in which a record of transactions is maintained on the Bitcoin blockchain and new units of currency are generated by the computational solution of mathematical problems and that operates independently of a central bank.”
The state agency acceptance bill has a broader definition for Bitcoin. The bill explains that in order to accept Bitcoin or cryptocurrencies as payment for fines, civil penalties, other penalties, rent, rates, taxes, fees, charges, revenue, financial responsibilities, and special assessments, a state agency may enter into an agreement with a Bitcoin or cryptocurrency issuer.
Senator Rogers introduced a bill seeking to establish Bitcoin as legal tender within Arizona last year. The similar proposal was never adopted and died by the second reading.
Developments in states like Texas, New Hampshire, Missouri, and Mississippi all point to growing interest in Bitcoin and its advantages among U.S. states. The likelihood of such laws passing will only rise as Bitcoin adoption grows.