The bill will officially recognize cryptocurrency and smart contracts for electronic transactions. It will also protect ownership rights of information secured by the same methods.
Despite the fluctuations of cryptocurrency prices and the risk of speculations, Jim Powell believes in the blockchain technology. After the presentation on blockchain technology held on January 24 he said that the state of Tennessee supports this technology and wants to be a leader in this innovation.
According to Powell, business exchanges using the cryptocurrency are not illegal in Tennessee, but his measure would establish a law ensuring it stays that way.
It may seem unnecessary for a lawmaker to propose to recognize cryptocurrency as a legal form of payment in a single state. Each state also has its own financial regulations and laws, and approaches cryptocurrency differently. State and Federal law in the US often conflict over controversial issues and Powell is looking at future conflicts between state and federal rulings on the use and legality of cryptocurrency.