Is it really possible for individual US states to establish Bitcoin as fiat currency?
Arizona Senator Wndry Rogers said Submission (SB 1341) She was at the end of last month Establish Bitcoin as legal tender In Arizona. Meanwhile, Texas Governor candidate Don Huffines If elected, recognize Bitcoin as fiat currency..
However, while there is growing interest in state leaders adopting Bitcoin in this way, there may be some obstacles. in short, The first provision of Article 1 of Article 10 of the U.S. Constitution:
“No country may conclude any treaty, alliance, or coalition. Give a letter of marque and retaliation. Coin money; issue a bill of credit. Other than gold and silver coins. Bide on the payment of debt. Pass a letter of marque, revenge, or a law that undermines your contractual obligations, or give you the title of aristocrat. “
At present, individual states do not appear to have the ability or authority to establish a newly accepted fiat currency within the United States Union. So it’s a bit of a fuss. However, it is clear that we have made great strides in the mainstream acceptance of Bitcoin, arousing the interest of American politicians and legislators and spreading like wildfires.
“It’s not about passing or how it affects Arizona,” he explained. Denis Porter, A podcaster focused on the intersection of Bitcoin and politics. “The real impact of this bill is the fire it ignited. Other states and parliamentarians now see it as a potential state option as a way to protect themselves from a runaway federal government.”
Development of game theory
It also means that Bitcoiners as individuals need to be careful and are far more critical of what our politicians claim and promise. The game theory we’ve been discussing within our circle for years is running almost as expected. Politicians and other public figures recognize the power behind gaining support from the Bitcoin community. Not only are we excited about pricing behavior, but we also have a very large number of voter bases within the US border. This voter base spans all parties and anyone can get support from every angle.
“States need to start adopting Bitcoin today, so they can start the process of protecting themselves from the federal government and freeing the country from the overly strong national financial system,” Porter said. I am. “This is a bilaterally beneficial plan for adopting Bitcoin in any state. It gives them more autonomy for their future.”
Changes in perception at DC
Another recent development at the crossroads of Bitcoin and politics can be seen in the bill submitted to the US Congress. Representative of Susan Delbene of Washington and David Schweikelt of Arizona February 3, 2022.
This particular bill aims to introduce a “feasible structure for taxing purchases made in cryptocurrencies” such as Bitcoin. One of the biggest obstacles to the adoption of Bitcoin by the general public is its infeasibility as a currency for everyday purchases, as it is treated more strictly as a stock or other long-term investment in the United States from a tax perspective.
DelBene and Schweikert aimed to alleviate this bottleneck by providing tax exemptions when using Bitcoin as a currency with capital gains of less than $ 200.
“This is a great way to normalize the whole’tracking purchases under $ 600′,” he said. antBitcoin blockchain data dashboard pseudonym author Timechain statistics.. “Accounting is a nightmare and few people know the cost base.”
But as national politicians try to normalize and increasingly regulate the use of Bitcoin, they inevitably parallel the national system, even if the regulation intends to increase adoption. , And challenge the status of the project as being outside the national system.
“Most important: such a bill exposes many bitcoiners, both directly and indirectly,” Ant warned.
Bills like DelBene and Schweikert may be seen as a benefit to some individuals who receive a portion of their salary in Bitcoin, but only quickly as a stepping stone to potential abuse of financial oversight. Will be provided in the future as well. This is a very important concern among many people in the Bitcoin field.
Bitcoiners need to be aware of how quickly they see these socially powerful figures swarming in this revolutionary asset. Pausing, holding your breath, and pondering before the two potential scenarios are executed is appropriate for all of us.
For one, we are in a hurry to regulate assets that are badly misunderstood and provide obstacles to the assets we are trying to protect. And the second is the Bitcoin standard, hoping to reach asset regulation before the regulatory plunge is fully measured or established, so as not to lead to weaknesses in the system itself. It is to support and uplift politicians who raise.
Our world moves fast, but we don’t have to break things. When it comes to state adoption, slow movement can be a blessing, not a curse.
This is a guest post by Mike Hobart.The opinions expressed are completely unique and are not necessarily BTC Inc or Bitcoin magazine..