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Author Topic: Wyoming Legislators Seek to Make it Easier to Deal in Digital Currencies! :)  (Read 461 times)
MicroGuy (OP)
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January 22, 2016, 04:02:28 AM
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CHEYENNE — A bipartisan group of Wyoming legislators has put forth a bill that would change the way the state treats cryptocurrencies, such as bitcoin.

House Bill 26 would amend the Wyoming Money Transmitter Act to define digital currency as a permissive investment. That means cryptocurrencies would be treated the same as U.S. dollars, Euros or any other currency when dealing with monetary transfers.

The bill’s main sponsor is Rep. Tyler Lindholm, R-Sundance. Lindholm said the best way to explain what the bill would do is to consider the current rules for transferring money using a company like Western Union.

“If I was going to send you $100 via Western Union, the Wyoming Money Transmitter Act requires Western Union to have $100 in cash reserves, so they have a backup if they lose my money somewhere along the way,” Lindholm said.

But what if you wanted to buy something using a service like PayPal, and you wanted to pay with bitcoin instead of dollars? Under the state’s current interpretation of the law, PayPal would need to have the corresponding amount of bitcoin in reserves, in addition to dollars.

In other words, if you wanted to buy $100 worth of product in bitcoin, the company making the transaction would need $200 in reserves to cover the transaction — half in bitcoin, half in dollars.

“With bitcoins, they’ve got to do double what anybody else does,” Lindholm said. “And for that reason, several institutions have refused to do business in the state of Wyoming.”

Bitcoin is the most prominent cryptocurrency, but there actually are more than 650 such currencies available for trade in online markets. Lindholm describes them as a sort of hybrid between fiat currencies like the U.S. dollar and precious metals like gold or platinum.

Like fiat currencies, bitcoins and other digital currencies base their value on trust in the system instead of any specific backing commodity. But like precious metals, bitcoins are finite; there is an upper limit to the number of bitcoins that can ever be produced.

Bitcoins are created using a decentralized process called “mining,” where individuals process transactions and secure the decentralized bitcoin network using specialized computer hardware. In exchange for that service, they collect new bitcoins, or fractions of new bitcoins.

“In terms of the mathematics behind it, it’s absolutely fascinating,” said Sen. Chris Rothfuss, D-Laramie, one of HB26’s co-sponsors. “It’s certainly not a system I would have 100 percent confidence in — I don’t want all my money in bitcoin, that’s for sure — but from a policy standpoint, for the state of Wyoming to treat it differently than any other currency holds it back.”

Despite wide swings in value, bitcoin has seen increased usage in online transactions. And for that reason, Rothfuss and the other co-sponsors of HB26 believe it and other cryptocurrencies deserve a fair shot in the Equality State.

“The legislation we’re providing doesn’t do an awful lot other than try to provide that level playing field,” Rothfuss said. “In my view, it needs to be treated the same as a ruble or a Euro, or any other currency.”

Lindholm said HB26 makes good business sense, given that the current state law has already caused some bitcoin-friendly businesses to pull out of Wyoming.

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Full Story: http://trib.com/news/state-and-regional/house-bill-seeks-to-make-it-easier-to-deal-in/article_f16d3bec-b6a5-537f-8056-976aee5f333e.html

~~
SFR10
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January 22, 2016, 04:25:50 AM
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I like were this article went all the way until the end although Lindholm showed the problem that most businesses face while using BTCitcoin here, but it wasn't completely a negative one as their attempting to consider BTCitcoin like any other fiat and actually try to ease it's use (hopefully) so looking forward for this bill to get accepted.

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BellaBitBit
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January 22, 2016, 04:38:16 AM
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So the IRS has classified Bitcoin as a commodity and Wyoming is classifying it as a currency like USD?  This will be interested to watch how states attempt to work Bitcoin into legislation.

I love Bitcoin
franky1
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January 22, 2016, 05:01:44 AM
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So the IRS has classified Bitcoin as a commodity and Wyoming is classifying it as a currency like USD?  This will be interested to watch how states attempt to work Bitcoin into legislation.

its not an commodity or a fiat.. the reality is that it is an asset currency

EG
commodity is a raw material that can be made into something else wheat=flour, corn=cereal gold=electronics, oil=car fuel.. bitcoin is not a raw material so fails the commodity test.

FIAT in the most laymens description is Federally.Insured.And.Taxed (the most basic way to describe it but gets the point across quickly) so fails that test too.

but an asset currency explains bitcoins use very easily and accurately.. (im not talking about the underlying technology just the use of the token measure)

I DO NOT TRADE OR ACT AS ESCROW ON THIS FORUM EVER.
Please do your own research & respect what is written here as both opinion & information gleaned from experience. many people replying with insults but no on-topic content substance, automatically are 'facepalmed' and yawned at
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January 22, 2016, 05:46:48 AM
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So the IRS has classified Bitcoin as a commodity and Wyoming is classifying it as a currency like USD?  This will be interested to watch how states attempt to work Bitcoin into legislation.

If you travel all over America, you will get 53 different definitions from the legislators there. They have several divisions within government and each of them has it's own views. If I started to name all of them, I would spell out the whole alphabet. SEC / IRS / NSA / CIA / BS ..... and we can go on for hours.

One thing about the Americans, they like to over regulate everything and they like their abbreviations. ^smile^

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