Short of accepting Bitcoin as legal tender, Californian Governor Jerry Brown passed bill AB129 which legalizes digital currencies and alternative currencies for transactions within the state. The previous prohibition on alternative currencies was primarily targeted towards fraudulent or competitive national currencies, however, the recent emergence of crypto-currencies along with several point based currencies brought the rationality of the previous legislation in to question.
As opposed to laws such as the proposed “BitLicense” attempting to restrict or monitor Bitcoin use, AB129 is actually intended to remove any legal loopholes preventing the use of Bitcoin for transactions. As of this bill going in to effect, California is now one of the most Bitcoin friendly states. This is a good thing considering that Silicon valley houses 32 of the 48 venture capital backed Bitcoin companies in the country. This is a great start to 2015 and lets hope this trend continues.