California Governor signs bill legalizing the use of Bitcoin & other crypto-currencies

Image Credit: BTC Keychain/Flickr

Bitcoin is now a legal form of payment within the state of California thanks to a new bill signed into law yesterday by Governor Jerry Brown.

It may seem a little strange that Bitcoin wasn’t already legal within the state — considering how large a role Silicon Valley played in both legitimizing and showing the business potential of all crypto-currencies. Also, Bitcoin was already being used by a number of businesses in the state as well as Bitcoin ATMs.

The bill itself actually repealed an older state law that prohibited the use of any currency other than the U.S. dollar. With the repeal in place, Californians are now free to use Bitcoin, other crypto-currencies, and even rewards points from loyalty programs.

Via Reuters

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Pascal Clarysse
Pascal Clarysse

Dumb question: doesn't this repeal also have for hypothetical consequence that a business owner can now also accept Euro, Yuan, Yen or any other foreign currency in his Californian shop if he or she sees fit?

Smack MacDougal
Smack MacDougal

@Pascal Clarysse Your question isn't dumb. The law removes previous law which decreed the U.S. Congress as the only body to define what is lawful money.

AB 129 signed by Jerry Brown does not authorize anything. Here is the entire text of the law:

SECTION 1.  Section 107 of the Corporations Code is repealed.