Texas Could Recognize Bitcoin As A Legal Currency

[Hydrogen]

Regulation of cryptocurrencies is one of the most complex issues facing the crypto world. And it is that, for many years, governments around the planet have been reluctant to recognize cryptocurrencies as real money with exchange value. However, this seems to be changing little by little, as more governments and regulatory agencies are open to recognizing the value of virtual currencies. The best example of this being that Texas could recognize Bitcoin as a currency.

The regulatory problem

It is impossible to minimize the damage that the lack of a strong regulatory framework causes to the cryptoassets ecosystem. Well, although more and more people around the world acquire and use Bitcoin or other cryptocurrencies as a method of payment and savings. The fact that they are not recognized by law, leaves crypto users in a situation of total defenselessness.

Thus, despite how convenient they may be, cryptocurrencies are banned in many countries, or they face such legal uncertainty that companies and citizens are not willing to use them. Fearing the possible legal consequences that this may have, or the lack of protection that the state can provide when doing business with Bitcoin and other currencies.

For this reason, the advances that the main governments of the world are slowly making are important. Which are opening the doors not only to the emergence of a greater number of crypto companies. Even allowing them to go public legally as is the case with Coinbase. If not in addition to the use of Bitcoin and cryptocurrencies as current money, this being the case of Texas and its new law.

Texas could be Bitcoin territory

This is so thanks to Bill 4474 introduced by Tan Parker, a member of the Texas House of Representatives. It proposes to include the rights of buyers who obtain control of the virtual currency for the purposes of the Uniform Commercial Code.

If this law is passed, Texas could recognize Bitcoin as a legal tender under its own regulatory framework. Qualifying cryptocurrencies as a digital representation of value that functions as a medium of exchange, unit of account or store of value.

This would not only be providing legal protection to the inhabitants of Texas and state companies that decide to carry out operations with Bitcoin, but also with any other virtual currency. Thus expanding the possibilities for crypto trading within the United States, and creating an incentive to carry out operations with crypto assets in the state. Becoming Texas, if the reform is finally approved and implemented by September 1, the second state after Wyoming to recognize the legality of virtual currencies.

https://www.forex-news.com/crypto-news/texas-could-recognize-bitcoin-as-a-currency/

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This could be great for texas attracting crypto miners in greater numbers.

Texas currently has new wind farms producing cheap electricity which allows miners to run operations off relatively carbon neutral green energy. They have Elon Musk and tesla residing in state constructing 100+ megawatt hour batteries for texas power grid. Large grid tied lithium batteries could give crypto miners in texas greater advantages. Due to them significantly reducing the cost of electricity. Now it appears texas has introduced this bill which would essentially legalized bitcoin. Variables may be aligning in unison to produce a perfect storm whereby texas emerges as one of the most powerful regions of emerging crypto mass adoption in the world.

The last sentence in the article mentions wyoming as recognizing the legality of "virtual currencies":

Wyoming Passes Bill to Recognize Cryptocurrencies as Money

In the United States, the state of Wyoming passed a bill that will allow for cryptocurrencies to be recognized as money on Jan. 31, according to the state legislature website.

On Jan. 18, Wyoming legislation presented the bill, which would help to clarify the classification of cryptocurrency.

As reported by Cointelegraph earlier this month, the bill will place crypto assets into three categories: digital consumer assets, digital securities and virtual currencies. Any digital assets that fall into those three categories will be defined as intangible personal property, granting virtual currencies the same treatment as fiat money.

The proposed bill also authorizes banks to “provide custodial services for digital assets consistent with this section upon providing sixty (60) days written notice to the commissioner.”

The bill will go in effect on Mar. 1, as stated on the Wyoming legislature website.

https://finance.yahoo.com/news/wyoming-passes-bill-recognize-cryptocurrencies-175700330.html

Which is an event which apparently occurred in 2019, that I was unaware of.

It could be interesting to look at wyoming job stats and economic growth to see if legalizing crypto carried a significant positive impact to wyoming's economy and standard of living.

[Poker Player]

I hope that the law is passed. It could be huge. We would enter another phase: from seeing whether Bitcoin is recognized or not to people being able to see jobs being created in their region around Bitcoin. I was familiar with Wyoming, but I think that Texas may have more impact because it is one of the most job-creating states in the USA and it also tends to facilitate the creation of new companies, with few regulations, etc.

[electronicash]

it's a gradual adoption. was Wyoming the first state who implemented Bitcoin as currency?
i saw an article about Miami as well and this time Texas. shifting would be hard but i think it's rewarding if they put trust in Bitcoin. how do they go about doing this actually?  it would be a big LN channel to operate for the state, I think they can do that.

[Kittygalore]

I hope that the law is passed. It could be huge. We would enter another phase: from seeing whether Bitcoin is recognized or not to people being able to see jobs being created in their region around Bitcoin. I was familiar with Wyoming, but I think that Texas may have more impact because it is one of the most job-creating states in the USA and it also tends to facilitate the creation of new companies, with few regulations, etc.

It is huge because Texas is the biggest stare in USA. This law that is going to recognize bitcoin as a currency is going to help the adoption get faster because when this happens that means that other states are going to follow and little by little, the whole country will adopt bitcoin and other countries will follow, it will be a chain reaction.

[Tytanowy Janusz]

Damn ... Am I the only person that is more disturbed than happy? Being a Legal Currency is completly differnt thing than being a token or collactables - full surveillance, restrictions on use (e.g. only from official wallets after switching KYC only to wallets that made KYC). I love bitcoin as it is now. Money for few people that wants to be free, abstraction for others rather than fully sanctioned money for everyone.

[The Sceptical Chymist]

This could be great for texas attracting crypto miners in greater numbers.

I'm wondering if those big mining interests that chose Texas as their base of operations had some kind of lobbying power in effect that convinced Texas's government to adopt this stance on bitcoin.  Either way, I guess it's a step forward for crypto.

The only thing that bugs me is that I don't like the idea of bitcoin and government going hand in hand like this.  It isn't as though bitcoin is completely anonymous, and it'd be very easy for the state of Texas to track all your financial transactions through the blockchain if you decided to use bitcoin as a currency.  And yeah, I get that if you're using a bank card or any other form of electronic payment, they can track you just as easily, but it makes me a little bit queasy.

Damn ... Am I the only person that is more disturbed than happy? Being a Legal Currency is completly differnt thing than being a token or collactables - full surveillance, restrictions on use (e.g. only from official wallets after switching KYC only to wallets that made KYC).

Sounds like you and I have similar feelings toward this announcement.  I'm all for less surveillance, though I think things are going to get much, much worse before they get better as far as that goes.

[dothebeats]

I have mixed feelings about this. Obviously it's good that bitcoin is getting 'legitimized' in some places. It gets people confident in using cryptocurrencies if enough government support is already present. However, the catch is they'd constantly be on the prowl to monitor bitcoin and its users given that the currency is already tied to their responsibilities, and also as a way to "protect" their citizens.

I guess there really are some trade-offs when it comes to legitimizing bitcoin, and perhaps anonymity is one of the first one that will take the blow.

[Fortify]

I get the feeling that these actions are not a warming and benevolent welcoming hug to cryptocurrency, but more about being able to control them in future. It is hard to pinpoint the angle that they are going for as it will be shrouded by a lot of billionaire lobbyist money, but they most likely have grand plans that are likely to favor the rich at the expense of the poorest if history is anything to go by. It might be a trickle down effect of all this institutional money that is trying to get a bit more regulatory and legal security so that their funds are not seized by the federal government in future. Any wholesale seizure of bitcoin in future might cause a calamitous collapse in the prime and it might be that certain investment funds want some sort of protection against such an action.

[RealMalatesta]

There was a lot of talks about Texas becoming the state where every mining facility was starting to to establish their situation. There is a situation where if there is billions of dollars worth investment to a state, usually that state takes care of those business' and that is why I think texas is now seeing bitcoin as a legal currency, because they want to help those business' and they want to attract even more of them as well.

There was even talks about Tesla starting their own mining warehouse as well, which would be insane considering how much sun texas gets and how solarcity is part of Elons portfolio and how much production Tesla has so they could print out machines like crazy, their own machines, and have a huge where house taking over a huge chunk of all bitcoin mining in the world, texas is opening that possibility with this new deal.

[sheenshane]

IMO, I have had this feeling that Tan Parker has a big investment in Bitcoin or cryptocurrency.  The way he proposes the bill protects the entire users to have their cryptocurrency in and out.

Texas is a very conservative state, that’s why I don’t really think that this law will pass.  But we will never know.
They are currently strengthening their finances there.  I heard that there is a lot of people moving to Texas because of their taxes, but honestly, I don’t want it to be legalized as restrictions will incur often. But if It will pass then good to hear and I think they were inspired by how Wyoming taking advantage of cryptocurrencies now.  I wonder how many collections they had after passing the bill.