Sunday, July 6, 2014

Bitcoin and Alternative Currencies in California

  • California Governor Jerry Brown signed the California Alternative Currencies Act which removes outdated laws, in place since 1849, which barred payment systems including digital currencies such as bitcoin, reward point systems such as airline frequent flyer milesAmazon Coins and Starbucks Stars and  community currencies such as Davis Dollars and Bernal Bucks.  The bill’s sponsor Assemblyman Roger Dickinson said ”this bill is intended to fine-tune current law to address Californians' payment habits in the mobile and digital fields.”
  • Also, venture capitalist Tim Draper was the high bidder in U.S. Marshals Service’s auction for 30,000 bitcoins that were seized from on-line service Silk Road.  Draper said the Bitcoins will be used to support the efforts of exchange provider Vaurum, who’s investors include Draper, Steve Case (founder of AOL)Battery VenturesCrosslink Capital and RRE VenturesNote: the government is still in possession of 144,000 bitcoins which will be auctioned at a later date.
MY TAKE
  • Regarding Bitcoins in California -   The removal of outdated laws by Brown and the California legislature acknowledges 1) the value of alternative currencies currently in use and 2) the potential for future innovation.
  • Regarding Draper’s purchase – It is another example of a high profile investor putting his money to work to support the early stage development of  the digital currency market.  

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