Delaware is expected to be one of the first states to legalize bitcoin and other virtual currencies, a new state law announced on Tuesday said.
Delaware is one of several states in the country that have legalised bitcoin and its digital equivalent, the virtual currency called bitcoin, under a 2015 law known as HB 523.HB 523 is similar to legislation that allows some state residents to pay for services using bitcoin, but it does not allow the exchange of bitcoin for goods or services.
The law requires Delawareans to be able to use their “current or previous physical currency to pay the price of goods or to obtain services in Delaware.”
It also allows for the exchange, transfer, or issuance of bitcoin and the related digital currency.
Sen. Mike Folmer, R-Staunton, said the new law will enable people in Delaware to use bitcoin in a way that will make Delaware a leader in the digital currency space.
Delawares bitcoin license holders will be able use bitcoin to pay utility bills, bills for their personal vehicles, utilities, and rent, according to a news release.
The Delaware state government will use the new license to issue and transfer bitcoins in the state, as well as sell bitcoins and the associated digital currency, Folmer said in a statement.
The new law, which was passed by a Senate committee last week, was approved by the full state Senate on Wednesday.
Delavans bitcoin license allows for up to $2,500 per transaction, according the news release from the Delaware Department of Revenue.
The bitcoin license will expire on Jan. 6, 2019.
In other states, lawmakers have also proposed bills that could allow the use of bitcoin to purchase goods and services.
Last month, Utah lawmakers passed a bill that would allow the purchase of goods and merchandise with bitcoins.
The bill was backed by bitcoin exchanges, and it also gave Utah residents until Dec. 1, 2019, to begin using bitcoin for payments in Utah.