People believe in Bitcoin’s potential
Even though Bitcoin’s value has declined by 60% from its all-time high in the past year, many still believe in the cryptocurrency’s future potential.
Transactions currently conducted using U.S. dollars would be able to be done with bitcoin as well. This means that businesses and individuals can use bitcoin to pay for goods and services, taxes, bills, and other financial obligations. This would be a significant step toward mainstream acceptance and adoption of bitcoin as a legitimate currency.
The bill specifically defines bitcoin as a decentralized, peer-to-peer digital currency. This means that it operates on a network of computers rather than being controlled by a central authority such as a government or a financial institution. Transactions on the Bitcoin network are recorded on a public ledger called the Bitcoin blockchain. New units of bitcoin are generated through a process called mining, which involves solving complex mathematical problems. The mining process ensures the integrity of the network and controls the supply of new bitcoins.
Ukraine also legalized bitcoin, in addition to other cryptocurrencies, in February last year.
The proposed bill, the “Acceptance of Cryptocurrency Bill,” allows state agencies to sign agreements with cryptocurrency issuers to accept it as a method for paying taxes, rent, fees, penalties, and other financial obligations. This is the second time that Senator Wendy Rogers has introduced legislation to make bitcoin a legal form of currency in Arizona; the previous bill was introduced in January 2022 but did not pass.