A bill to use digital currencies such as Bitcoin (BTC) and Ethereum as a payment method in state government entities has been introduced in the New York Senate.
What the New York bill intends to do
The bill, which was introduced on January 26, introduces revisions to the state’s existing finance law to make room for the use of digital currencies.
Clyde Whannell, a Democrat from the New York State Assembly, is widely regarded as a crypto-friendly lawmaker, and he introduced Bill A523 on their behalf.
The law defines digital currency as any type of digital money in which encryption methods are used to manage the formation of units of currency. This definition includes, but is not limited to, cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Bitcoin Cash, etc.
This standard does not require government agencies to accept digital currencies as a form of payment. However, it makes clear that government entities may legally agree to accept such payments and that such agreements must be enforced by the judicial system.
It enables government agencies to agree with individuals to facilitate the acceptance of cryptocurrencies by state offices as a form of payment for various types of charges, including fines, civil penalties, rent, rates, taxes, fees, charges. , revenue, financial obligations, or other amounts, including fines, special assessments and interest, payable to governmental agencies.
Will the US state make Bitcoin a legal currency?
As reported by Ramzifa on January 26, Wendy Rogers, a state senator in Arizona, has proposed legislation regarding cryptocurrencies, one of which would declare Bitcoin a legal tender in the state. One of the proposals is to recognize Bitcoin as a valid currency.
The king’s cryptocurrency is defined by law as a decentralized, peer-to-peer digital currency that operates independently of a central bank, where a record of transactions is maintained on the Bitcoin blockchain. In addition, new currency units are generated by computationally solving mathematical problems.
The second bill recommends that government agencies enter into an agreement with a digital currency issuer to pay fines, civil penalties or other penalties, rent, rates, taxes, fees, charges, revenue, financial obligations and special assessments with a digital currency issuer. That agency or the State of Arizona.