California Legalizes Bitcoin

Digital crypto-currency is now allowed in California.

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    NEWSLETTERS

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    Bitcoin is now legal tender for all debts in California, public and private.

    Provided, of course, that bitcoin -- or other digital currencies -- are accepted.

    An "outdated" law that banned the use of "anything but U.S. currency" in California has been bypassed by Gov. Jerry Brown, who signed into law on Saturday a bill that ensures bitcoin is acceptable in the Golden State, according to Reuters.

    Bitcoin is a darling of the technorati, who have seen other early adopters like Lt. Gov. Gavin Newsom -- who is accepting campaign contributions in bitcoin -- hop on board the crypto-currency train.

    The law also allows "community currencies" like the ones used in some downtown merchant districts as an alternative method of payment.

    Bitcoin is also big for federal law enforcement, who seized some 30,000 bitcoins in the raid of online drug marketplace Silk Road, and for law-breakers, who stole 850,000 bitcoins from bitcoin exchange Mt. Gox.

    The digital currency, essentially a math equation that changes everytime another person agrees to trade in it, was trading at about $618 per coin on Monday.