Tennessee Legalizes Bitcoin and Other Cryptocurrencies
As we continued to be mired in a world of FUD, traveling under the radar is some good news.
The Governor, Bill Haslam signed a bill into law on Thursday that officially recognized blockchain for electronic transactions and gave smart contracts legal rights.
Blockchain technology is defined in the bill as “any distributed ledger protocol and supporting infrastructure, including blockchain, that uses a distributed, decentralized, shared, and replicated ledger, whether it be public or private, permissioned or permissionless, and which may include the use of electronic currencies or electronic tokens as a medium of electronic exchange.”
This is exciting news. This new law makes cryptocurrencies a valid unit of exchange in the state of Tennessee. Essentially, it puts it on par with the USD in this regard.
We are starting to see pieces of legislation like this emerge from around the country. While the Feds have taken a mostly hands off approach (which is a good thing), the states are beginning to move to recognize cryptocurrency as a medium of exchange.
Wyoming recently established a new classification for cryptocurrency, specifically utility tokens and there are a number of other states with bills in their state houses.
The smart contract aspect of this law is also encouraging.
A smart contract is defined in the bill as an “event-driven computer program, that executes on an electronic, distributed, decentralized, shared, and replicated ledger that is used to automate transactions.” The bill notes that “no contract relating to a transaction shall be denied legal effect, validity, or enforceability solely because that contract contains a smart contract term.”
Essentially we see smart contracts placed at the same legal level as any other contract. This is important because the legal arena is based a great deal on precedent. Getting this on the "books" allows others to cite it for future legislation.
It is difficult to be patient with what is happening but it is going to take millions of actions on every level before blockchain and cryptocurrency reach their potential. When technologies go through the hype phase, it is usually because the excitement surrounding it takes place without the ground level work being completed.
When the hype "pops" and the media turns away, that is when the "real' work begins. This is a big reason why it is crucial to not watch the pricing action of STEEM but what is being developed and created. It is overwhelming to try and keep up with all that is taking place on this blockchain. Each day, it appears that there is something new.
And part of the process, unfortunately, is for the governmental entities to throw in their two cents and write laws for or against. It is good when we see laws that come out protecting blockchain and cryptocurrency. This helps to build a solid foundation.
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Thank for sharing!!!
Keep it up!
Nice to see that Tennessee passed the bill. Every little bit helps.
I won't have an update on the Arizona effort to accept 'BitCoin and other CryptoCurrency' for State Income Tax until tomorrow. Last report had it through the Senate and in committee in the House.
I'll let you know.
Yes Arizona hit the news wire too with the Senate passing it....from what I understand, if it goes through the House, the Governor will sign it.
That is encouraging.
My update came late enough on Sunday that I'm a day later than I thought.
SB1091 is in the House Rules Committee scheduled for hearing today (Monday). I'd now put overall passage chance at a bit over 50%. If it makes it through committee I think it will pass. If passed the Governor will sign it.
Here is the text from the update I get. THEIR WORDS NOT MINE :)
"SB1091, sponsored by Sen. Warren Petersen (R-12), would allow the payment of income taxes using Bitcoin. US currency remains valuable in part because the government demands it in payment for taxes. Bitcoin, in contrast, has no intrinsic value at all (and hence an incredibly volatile price) and is highly susceptible to market manipulation. Arizona currently doesn’t accept any currency other than US legal tender. Why do this for the “naturally occurring Ponzi scheme” that is cryptocurrency? Its volatility would almost certainly have a negative effect on our state’s already cash-strapped revenue streams. Passed the Senate 2/8, with only Brophy McGee (R-28) crossing party lines. Ready for House Rules Committee, meets Monday. OPPOSE."
I look at news like this and I wonder how can mainstream news spread so much FUD about crypto, when almost everyday we see good news.
Tennessee legalizes cryptocurrencies and with them more will do the same, they are the first showing that it is possible to complement regulation with "the future".
This is a good news @taskmaster4450
The world of cryptosystem has finally started to see the light of the day. I know very soon some other form of transactions will be carried out through blockchain.
Tennessee really did well with this. No any form of panicking again.
We are living in interesting times. The birth of a new asset class that's going to change the world in our lifetimes. I'd say we are very fortunate for that. All these legalization efforts are not because of the pureness of their hearts, they have come to realize that crypto is a genie they can't put back in the bottle so there's no point in fighting it! They are going to tax it and regulate it like everything else.
The ball's rolling... Such positive legislative news is far more important in the long run, as such legislations will set the long term tend towards large scale adoption, far more important than the sensationalism that we usually see in media.
Almost 7 million people are under legal jurisdiction, at least, at least according to the state, to use cryptocurrency as legal money.
That is a big step...now to add another 50M or 75M more in the US.
Thanks for the post. Crazy to think this is already happening but it's great news. Let's hope that this starts a domino effect and other states/legislation start to adapt and move forward with this or at least start the conversation.
My biggest concern would be if everything goes through and then let's say there's a government problem where they need "their share" or if execution becomes messy or just anything detrimental happens while going through with this, and that turns into a media war against crypto... Let's keep our fingers crossed and see.. Thanks for the update!
Beautiful cryPto currency..
Thanks for sharing..
I like it..
They make Bitcoin sound like a drug