Draft Bill Proposes Utah Accept Bitcoin for State Services, Cites Entrepreneurial Mandate

A bill drafted by Rep. Marc K. Roberts proposes that Utah accept bitcoin Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term for state services. Its first reading in the state legislature took place on Tuesday.

The bill notes how Utah was "founded upon the principles of industry and entrepreneurialism" and that "technological industries, including industries in emerging technologies, play an increasingly important role in Utah's economy and culture." Therefore, the state should accept bitcoin, which is "based on the principles of free-market capitalism and is not centrally regulated."

Practically, the bill says, merchants save on transaction fees with bitcoin relative to other payment mechanisms. It also points to the fact that several companies already accept bitcoin for payment, including Utah-based Overstock.com.

It also offers some more questionable arguments, such as the fact that bitcoin's market cap is valued at about $3.3 billion.

The bill also proposes the creation of a special council to assess the suitability of bitcoin acceptance. It would consist of representatives from the Office of the State Treasurer, the Division of Finance, the Governor's Office of Management and Budget, the State Tax Commission, other relevant government subdivisions, merchants already accepting bitcoin and local advocacy groups.

Among the council's tasks would be to determine how the state can minimize its exposure to risk when accepting bitcoin.

The short title of the bill does not mention bitcoin or refer to Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term. It reads, "Concurrent Resolution on Payment Options for State Services."

A very similar bill was drafted only a few days ago in New Hampshire, proposing the state accept bitcoin for taxes and fees by 2017.