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Take notes Colorado, California passing law making Bitcoins legal money

Colorado should be taking notes from California, which is in the process of becoming the first state to classify virtual currencies as legal money with the anticipated passage of bill AB129.

Bitcoin ATM - Liberty Teller
Photo by Darren McCollester/Getty Images

According to the California Senate Banking and Financial Institutions Committee, “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.”

Colorado Bitcoin Attorney, Benjamin Yablon commented 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.”

The Banking and Finance documents state “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.”

Yablon sees California’s passage of AB 129 as an opportunity for a new generation of monetary innovation. “We have a vibrant tech sector here and far fewer state wide economic problems.” Colorado doesn’t seem to be far behind creating its own legislation to address virtual currencies. Yablon is currently working to draft a similar bill for Colorado. “In my law practice I have several ways to help achieve the same kind of confidence building measure that a bill like this delivers. Step one is to make the investment in Bitcoins safe.

With the unanimous approval by the Assembly, AB 129's final destination will be the Governor’s desk assuming no changes are made to the bill by the legislature. Yablon noted that, “When mainstream consumers and investors really start to feel confident in Bitcoin as a physical object that is housed in an insured cold storage facility, widespread adoption is inevitable.” Let’s hope Colorado embraces virtual currencies with the same progressive thinking and excitement that California is demonstrating.

Additional Bitcoin articles:

Bitcoin: Another payment solution for your small business or nonprofit?

Why Overstock.com made the decision to accept Bitcoins

Exclusive interview with Colorado’s Bitcoin Lawyer, Benjamin C. Yablon, - Part 1

Exclusive interview with Colorado’s Bitcoin Lawyer, Benjamin C. Yablon, Part 2

Part 3- Conclusion of exclusive interview with Colorado’s only Bitcoin Lawyer

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