California legalizes bitcoin

The virtual currency bitcoin is now legal in California. Gov Jerry Brown (D-CA) has signed into a law a bill that will allow businesses and individuals to use bitcoin in transactions.

The bill -- from Assemblyman Roger Dickinson -- repeals a state ban on using currency that is not “the lawful money of the United States.”

The Assembly's report on the bill notes the popularity of bitcoin -- which "has gained massive media attention recently as the number of businesses has expanded to accept bitcoins for payment" -- as well as the "frequent shopper" reward programs.

After the one-sentence bill passed the Assembly 52-11, Assemblyman Dickson touted the bill as recognizing the popularity of virtual currency.

“In an era of evolving payment methods, from Amazon Coins to Starbucks Stars, it is impractical to ignore the growing use of cash alternatives,” he said.