Feeds

Bitcoin was illegal in California? Whoops, governor fixes that 165-year-old money law

Crypto-currencies threatened by anti-counterfeit cash rules

Secure remote control for conventional and virtual desktops

California Governor Jerry Brown has signed off on a law legitimizing Bitcoin and other cryptocurrencies for use in the state.

The governor rubber-stamped AB 129, enacting what legislators say is a much-needed overhaul of the state codes on currencies.

Under the new law, digital currencies and community currencies are protected from the state's counterfeiting laws – which ban the use of anything other than genuine US dollars.

According to lawmakers, the rules date back to California's founding as a US state in 1849 and its original constitution, which prohibited banks and non-government groups from dealing in their own currencies. The currency rules were later transferred to the state Corporations Code, where they remained on the books in California.

While the danger of the state economy being undermined by multiple currencies is no longer a worry, lawmakers feared the provisions were a dangerous technical threat to digital currencies, which could be seen in violation of a law carrying penalties of up to 15 years of imprisonment.

"According to the literal meaning of the statute anyone that issues or uses digital currency, community currency, or perhaps even reward points is in violation of the law," the bill's analysis reads.

"However, the Assembly Banking and Finance Committee is unaware of any prosecutions, arrest or enforcement actions relating to this statute."

With the bill now signed into law by Governor Brown, companies can safely trade in digital currencies without fear of being found in violation of a 165-year-old legal provision designed to rein in frontier banks.

Among the digital currencies listed in the bill are Bitcoin, Litecoin, Ripple and Dogecoin. The bill also covers locally used "community currency" vouchers which city governments issue for use with local businesses. ®

New hybrid storage solutions

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.