California Considers Currency Changes

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According to an article in the National Law Review, the state of California is considering changes to their state code that would amend section 107 to read:

A corporation, flexible purpose corporation, association, or individualperson shall not issue or put in circulation, as money, anything but the lawful money of the United States.  Nothing in this section shall prohibit the issuance and use of alternative currency that is redeemable for lawful money of the United States or that has value based on the value of lawful money of the United States but a corporation, flexible purpose corporation, association, or individualperson shall not be required to accept alternative currency.

If you are asking me, this doesn’t really clarify much. The intent of the law is to prohibit states, banks, or other entities from issuing their own money. With at least 19 communities in California operating community currencies, plus all of the other barter exchanges operating in the state, the prohibition of issuing money has not been successful, and this legislation, while changing some wording, does very little in the way of clarification.

Read more commentary at http://www.natlawreview.com/article/california-legislature-considers-allowing-alternative-currencies-re-bitcoins

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