Arizona Senator Introduces Bill Exempting Digital Currencies From Property Taxes

Arizona wants to become the most digital-currency-friendly state in the US, with a new bill to exempt Bitcoin from property taxes and make it legal tender. The bill further seeks to protect the right of Arizona residents to run a node on any blockchain network.

The new bill was introduced by Wendy Rogers, a Republican member of the Arizona State Senate. First he offers make digital currencies legal tender for use in payment for any goods or services without counterfeiting.

“This state shall not prohibit or interfere with the ownership or possession of any form or amount of money or other currency,” according to the bill.

This proposal, even if passed by the Arizona Senate, will violate the US Constitution. Below ‘Limits to legal tender issuance‘, the constitution prohibits any state from “doing anything but coins of gold and silver in payment of debts”.

Currently, only El Salvador has made the digital currency legal tender in 2021, a move that unsurprisingly proved disastrous for the Central American nation. However, President Nayib Bukele continued to tout the benefits of BTC and even shelled out tens of millions of dollars every two weeks to buy more BTC for speculative purposes.

Some digital currency skeptics dismissed the bill, saying it was just a publicity stunt that wouldn’t amount to much.

“I see this much more as a stunt than a real overhaul,” said Rohan Gray of the Digital Fiat Currency Institute. noted, deeming this decision unconstitutional. Grey’s organization is pushing for the issuance of a sovereign digital dollar.

Senator Rogers further proposes that state agencies in Arizona should “accept cryptocurrency as a method of payment for fines, civil penalties, or other penalties, rent, rates, taxes, fees, charges, revenues, financial obligations and special assessments to pay any amount owed to that agency or state.

Along with payments, the senator wants the state to exempt digital currencies from property taxes, a proposal that some thought leaders in the digital currency industry fully support.

On blockchain, the bill seeks to protect the right of any Arizona resident to participate as a node operator, stating, “A city or town may not prohibit or otherwise restrict an individual 8 from operate a node on blockchain technology in a residence.”

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