Mike Alfred Shared: Bitcoin is going to be legal tender in at least one US State by the end of 2022. Texas, Arizona, California, and Michigan are all in the running. The price could easily gap to all-time highs on the first announcement and the shorts are terrified.
Community Response: Not allowed under the constitution I am afraid: “Section 10 denies states the right to coin or to print their own money. The framers intended a national monetary system based on coin and for the power to regulate that system to rest only with the federal government.”
States wouldn’t be printing any money by making Bitcoin legal tender. They aren’t making their own money.
States cannot issue legal tender. Legal tender is managed on the federal level by the Constitution commerce clause. There is one exception: states can make “gold and silver Coin a Tender in Payment of Debts.” This has been done by Utah. US gold coins are non-taxable like cash.
If we build the Church of Bitcoin, we can all become ordained as ministers (if you hold $BTC) and won’t have to pay taxes.
Why red states are more welcoming to bitcoin? Alignment with libertarian values. But progressives should get on board as Bitcoin can be seen as a people’s money that takes power away from banks.
CA??? I have not seen the first indication of even an unsubstantiated rumor on this. Is this a thing??
Don’t you think the Fed would fight that? Are they able to though?
The Fed wouldn’t have legal standing. Biden’s Justice Dept certainly would though and it would go to the Supreme Court w/decision depending on court make-up at the time. Even if fails, the massive publicity would be a huge push for general adoption.
Against federal law: No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make anything but gold and silver Coin a Tender in Payment of Debts (unless they claim BTC digital gold).
They would not be creating the money, just saying they will use it?
Crypto may not be allowed as legal tender by the US Constitution. But, with Defi systems (hopefully based on Bitcoin) a state can create and issue bonds that are just as limited in supply and divisible as Bitcoin. Such bonds could be used as money and are not prohibited.
This is not possible because of the constitution. A state is not allowed to legalize e-tender by itself.
Technically we are already past that. State-run/state-subsidized energy producers already use excess energy reserves to mine BTC (ie create digital currency). The state “recognizing” it as legal tender is just a formality to be able to sell BTC to state pension funds. Keep up!
Mike…I’m as bullish as they get. And although this is possible, it’s very unlikely in 2022. Whenever it does happen though, it will be an incredible legal battle that will go to the Supreme Court. We need to start Orange Pilling the justices now in preparation.
What do you think Dennis Porter? Unlikely in 2022? The end of 2022 is bearish.
What makes you think it? Which states have you talked to about it, and who seems to be pushing for it the most? I want this to happen, but I’m pretty skeptical that a US state would go that far right now. There could be a lot of political career risk in it.
MF will have words with those states. They want to stay in control. Would love to see it but they’ve given El Salvador some serious grief for making it legal tender there. What will they say to an American State wanting to go down the same path?
How the heck would this happen in Brad Sherman’s California?
Steven is a technology-focused writer with a strong interest in emerging digital trends and innovation. With experience spanning both travel and online projects, he brings a global perspective to his reporting and analysis. His work reflects a practical understanding of how technology, markets, and digital platforms intersect, offering readers clear insights into developments shaping the modern tech and crypto landscape.
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