California Legalizes Bitcoin And Other Digital Currencies

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Have you already been mining Bitcoins? If you do, then we have some good news for you?if you?re from California that is.

California Governor Jerry Brown signed a bill last Saturday that legalizes the use of Bitcoins and other digital currencies in the state. The bill was passed last June 4.

The signed bill, called AB 129, permits Bitcoins and other digital currencies to be legally used in transactions in California. This repeals a provision of state law that prohibits the use of ?anything but the lawful money of the United States,? which essentially restricts anyone from using alternative currencies in the United States.

According to Assemblyman Roger Dickinson, the new law he proposed is all about the practicality of digital currencies.

?In an era of evolving payment methods from Amazon Coins to Starbucks Stars, it is impractical to ignore the growing use of cash alternatives,? Dickinson said in a statement not too long ago. ?This bill is intended to fine-tune current law to address Californians? payment habits in the mobile and digital fields,? he added.

There are indeed many communities and establishments that have created their own models that allow consumers to use alternative forms of currency to pay for goods. These ?community currencies? are intended to encourage customers to shop at small businesses.

Bitcoin is a virtual currency introduced in 2009 and has gained a lot of attention in the industry as businesses started to accept bitcoins for payment. The currency, also called ?bitcoins?, are created as a reward for payment processing work in which users use their computing power to verify and record payments. Individuals or companies engage in an activity called ?mining? in exchange for transaction fees and newly created bitcoins.

Bitcoin has been the subject of scrutiny in the past that suggests it is used in illegal transactions. Last year, the Bitcoin Foundation was ordered to cease operations in California which accused them of ?engaging in the business of money transmission without a license or proper authorization.?

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