Robert Steinadler, 2 months ago

Arizona Senator starts second try to make Bitcoin legal tender

El Salvador set an example when making Bitcoin a legal tender in 2021. With only the US-Dollar and no national currency available, it seems to be a good idea to emancipate and start looking for alternatives. Other countries are not in the same situation and already have a national currency that is trusted, at least in most cases. Interestingly enough, a representative of Arizona is not happy with the world's reserve currency and is trying to make Bitcoin legal tender.

Who is making these bold moves, and why has Bitcoin not become legal tender yet?

Wendy Rogers is on the case

Senator Wendy Rogers already committed a draft for a Bitcoin bill in January 2022. However, the bill did not pass since the majority of senators were not getting behind Rogers's plans when the bill was being voted on. Now, Rogers is trying to establish Bitcoin as a legal tender for a second time in 2023.

Rogers, a far-right republican representative, argues that the bill would allow Arizona to leap to the top of the financial industry by embracing Bitcoin as legal tender. The draft is not only discussing the benefits of Bitcoin, but also provides suggestions on how to implement BTC and make its use beneficial for society as a whole.

It is not clear if this could constitute a quantum leap for Arizona. Bitcoin adoption in El Salvador is doing well, but it is still below what was expected from its introduction as El Salvador’s de facto national currency next to the US-Dollar.

Use Bitcoin as a currency

The bill suggests that taxes and fees for public services can be paid in Bitcoin. It would also free merchants from the requirement of holding Bitcoin in separate accounts. What might be even more important is the fact that the law would change tax laws so that paying and accepting Bitcoin wouldn’t be complicated any longer.

So far, Bitcoin is treated as a commodity and that means that only realized gains and losses are subject to taxes. This is not the case when using the Dollar, and is perhaps one of the biggest hurdles for merchants to accept Bitcoin.

It remains to be seen if Roger’s bill will be successful this time. Other states are also interested in Bitcoin and perhaps Arizona has the opportunity to lead by example.

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