A bill unanimously passed by the California State Assembly last week moves to end legal confusion and make Bitcoin “lawful money.” AB 129’s fate now rests with the State Senate. Once passed through the Senate Policy Committee and the Senate Fiscal Committee it will reach the Senate Floor. If the bill passes the Senate, the final decision rests with the California governor. With the recent banning of Cryptocoins in Russia, China, and India, this is encouraging news for proponents of Bitcoin and crypto-currencies.

“This bill makes clarifying changes to current law to ensure that various forms of alternative currency such as digital currency, points, coupons, or other objects of monetary value do not violate the law when those methods are used for the purchase of goods and services or the transmission of payments. Modern methods of payment have expanded beyond the typical cash or credit card transactions. “

This seems to have started a domino effect as Colorado is now looking at doing the same thing. It seems as though lawmakers have seen the potential value that Cryptocurrency can offer to businesses and made the correct choice.

California badger

The most important part about this decision is how it effects businesses. Currently, the Cryptocurrency market is worth over $7 Billion across all coins. This means a massive amount of money that was previously unavailable to be spent for fear of the law, could soon be available for consumers to use to purchase things from their favorite stores. Business owners that haven’t already made it possible for consumers to purchase their goods with Cryptocurrency, need to get on board ASAP if they hope to cash in on the huge amount of currency that is available.

“These point systems effectively operate as currency allowing the consumers to buy a retail item or pay for some type of service. Many communities across the United States and in California have created “community currencies” that are created by members of a community in conjunction with merchants who agree to accept the alternative currency.”