Bitcoin Declared Lawful Money in California Assembly [Video]

california24 Feb 2014 – Liberty Voice – The California State Assembly has unanimously passed measure AB 129 declaring Bitcoin and other cryptocurrencies as “lawful money.” Bitcoin and other cryptocurrencies like Dogecoin, Ripple, and Peercoin have gained popularity over the past year.

To be clear, “lawful money” is different from “legal tender.” “Lawful money” describes any currency that is legal to use in exchange for goods and services, but is not required to be accepted for debts, taxes, or any other dues. “Legal tender” is different, as the United States Code Title 31, Section 5103 states “United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues.” Boiled down, “legal tender” is to be accepted as a valid currency for debts and dues, while “lawful money” can be accepted, but is not mandatory.

Before the passing of measure AB 129, Bitcoin and other cryptocurrencies were not deemed “lawful money.” In the state of California, it is against the law to issue or circulate any currency that is not “lawful money,” and doing so can result in fines up to $15,000 or 15 years imprisonment. AB 129 clears up the misconception that Bitcoin and other cryptocurrencies may be considered a form of counterfeit money. The measure was passed in a vote of 75-0 late last month, and now requires approval by the California Senate. The passing of measure AB 129 is another step forward for Bitcoin as well as the other 121 cryptocurrencies that have since been created….. Read more

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