Arizona Considers Making Bitcoin Legal Tender
In Arizona, a state legislator has presented legislation to make bitcoin the official state currency.
A state lawmaker in Arizona has submitted legislation to make bitcoin legal tender in the state. However, federal law may complicate matters.
On Tuesday, Arizona State Senator Wendy Rogers submitted a bill to add legislation to Arizona law making bitcoin a legal currency. A second reading was held on the Senate floor on Wednesday. It has not yet been determined whether or not a vote will be held.
However, cryptocurrency law experts believe that the US Constitution may make the passage of the bill difficult.
“The Coinage Clause of the Constitution means that the power to determine what is and isn’t legal tender in the United States is the exclusive province of Congress,” said Preston Byrne, partner at law firm Anderson Kill. “If enacted, [the bill] would be largely symbolic.”
States attempted to circumvent the Coinage Clause in the 1800s by printing their own “state bank notes,” but they were largely unsuccessful. Congress effectively put an end to the practice by imposing a 10% tax on payments made in a currency other than national banknotes in the National Bank Acts of 1865 and 1866.
The law was introduced in response to Rogers’ promise to make Arizona a crypto-friendly state. She was selected to the Blockchain and Cryptocurrency Study Committee in September 2021, she stated on Twitter.
The group is made up of members of the Arizona state House and Senate and members and advocates from the digital asset business.
According to government documents, the committee intends to “analyze data on the extent of blockchain and cryptocurrencies around the country” and evaluate how the technology can fit into Arizona’s existing financial infrastructure.
Visa Records Over $2B in Transactions for Crypto-linked Cards in 2022 Q1
In its most recent earnings call, pro-crypto international payment firm Visa announced that customers of its platform carried out over $2.5 billion in transactions using their crypto-linked cards.
This figure is already more than 70% greater than all crypto card transactions in fiscal 2021, indicating the level of adoption experienced in the digital asset business this year.
According to the company’s Chief Financial Officer, Vasant Prabhu, despite the industry’s volatile nature, Visa has observed an increase in transaction volume in crypto.
Earlier this year, major digital currencies such as Bitcoin and Ethereum saw their values plunge to new lows as the market saw a broad correction following the Federal Reserve’s announcement of its new hawkish attitude.
Prabhu went on to say that “this implies that consumers recognize the benefit of having a Visa card linked to an account at a crypto platform.” In an interview with CNBC, he also noted the convenience of funding and monitoring purchases with the card.
Crypto-linked cards are getting increasingly popular in the market. These cards enable holders to spend cryptocurrency everywhere Visa is accepted.
Merchants receive the transactions in fiat currency, as they do with ordinary credit card transactions, with the processor managing the conversion.
Crypto transactions are still on the rise.
The use of Visa crypto-linked cards has expanded steadily over time, as seen by the value of transactions. Visa reported $1 billion in card transactions over the first six months of 2021. This was an increase above the previous year’s figures.
With record spending in the first fiscal quarter of 2022, it’s evident that more individuals are beginning to perceive crypto assets as a viable payment option.
“People are using their crypto-linked cards to spend in a variety of ways,” said the CFO. They’re being viewed more and more like a general-purpose account.”
Aside from the increasing transaction volume, Visa said that it had increased the number of crypto firms with which it is collaborating to support the services. Previously, the firm had roughly 54 organizations employing its services, but that figure has since risen to more than 65.
It’s worth noting that Visa isn’t just supporting crypto payments. The company’s tentacles have spread to other crypto areas such as consulting and the emerging NFT space.
Despite all of these pro-crypto measures, it has no intentions to hold any cryptocurrency on its balance sheet at this time.