Digital Currencies Could Be Legal in California With Passage of AB-129 Bill

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Updates: This page indicates the last action was on Feb. 6, so there seems to be some confusion with regard to the passage of this. Editing title to reflect this. You can check the Examiner story that was sourced here. Working to get more info.

Updates: See this link.

Not terribly long ago, we wrote about a bill that aimed to make alternative currencies in the State of California legal through the amendment of Section 107 of the Corporations Code.

Bill primer:

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.

As of late last week, the bill passed unanimously, according to the Examiner. It is headed toward the state senate. If it gets passed, it’ll mean that anyone looking to spend or accept bitcoin, or other forms of alternative currency listed in the bill are doing so within the law. The bill does not force merchants to accept these currencies.

Colorado-based bitcoin attorney Benjamin Yablon said that “the pace of change surrounding Bitcoin is astounding. Making Bitcoin and other crypto-currencies legal and safe is the first step to their widespread adoption. They are giving a green light to Bit-entrepreneurs to sink their money and time into California’s economy.”

Yablon is working on a similar bill for his state.

Upon passage, this could very well be the start of bitcoin-related innovation in the Golden State. Whether or not start-ups see this as their opportunity, well, time will tell (although Coinbase calls California home). [via Examiner]