- February 2, 2023
- |Bitcoin, Crypto News, Government, Regulations
The state of Arizona has just introduced a new bill to make Bitcoin legal tender which would essentially allow Bitcoin to be used for various payments such as debts, public charges, and even taxes. If this bill passes, it would be a tremendous milestone for the state as no other state in the US has made Bitcoin legal tender yet.
Arizona would be one of the first to follow the steps of El Salvador, which was the first nation in the world to officially make Bitcoin legal tender.
Skeptics are unsure about the bill as many are still determining the implications of using a digital asset for official transactions. So far, many assume that the bill’s passing would have a much more significant effect on the economy due to the fact that Arizona’s GDP is more than ten times the size of El Salvador’s national GDP.
What Does This Mean For The Copper State?
With that being said, there are many supporters of this new push to utilize cryptocurrencies like Bitcoin for legal tender. Due to El Salvador’s success in doing the same. For example, it allows for much faster and cheaper cross-border remittance transactions and attracts much international capital to the country. This move will likely turn El Salvador into the next hub for cryptocurrency, attracting crypto firms and businesses into the local economy. If Arizona passes the bill, the Grand Canyon state will also likely obtain these same benefits, making it the number one place in the United States for all things crypto.
This is not the first time such a bill was introduced in Arizona, as state Senator Wendy Rogers had previously attempted to pass this bill back in 2022. Unfortunately, the bill failed to pass as it could not get bipartisan support, and many suspected that the federal government might intervene in some way even if it did pass.
The market cap of Bitcoin and the rest of the crypto industry has also recently seen a significant recovery, and investors believe that the long-term fundamentals of the crypto market are still solid. Moreover, despite the bear market, much institutional capital is being invested back into digital assets. Therefore, Arizona making Bitcoin legal tender would allow the state to participate in that growth.
Cryptocurrencies are expected to continue to disrupt existing financial systems, and many are optimistic that a bill that makes Bitcoin legal tender will pass inevitably. The only question is when it will happen, and Arizona has a good chance of being one of the first states to do this in the nation’s history.