New California Bill To Legalize Crypto For Tax Payments From Cannabis Businesses

The crypto news today show that lawmakers in the US state of California have recently introduced a new bill that will allow all the cannabis-related businesses to pay fees and taxes in stablecoins. The bill was first announced on February 21st by the California State Assembly.

Thanks to the Assembly Bill 953, the city, state and county tax offices in California will accept stablecoins – which are basically altcoins pegged to a physical asset or a fiat currency – exclusively designed for cannabis-related businesses that seek to pay their excuse or cultivation taxes.

The bill will take effect from January 1st, 2020.
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As an excerpt from it reads:

“The bill would authorize that city or county in determining that method to either accept stablecoins directly into a digital wallet controlled by that jurisdiction or to utilize a third-party digital asset payment processor that allows for the immediate conversion of any payments made by stablecoins into United States dollars and deposit into an account of that jurisdiction.”

Meanwhile, cannabis is legalized in several states in the US, but the cannabis-related businesses have difficulties in securing simple financial services from banks, where the vast majority are secured by the Federal Deposit Insurance Corporation (FDIC) and are prohibited from offering their services in an industry that is still seen as illegal under federal law.

The good thing is that cannabis dispensaries can hold a lot of dollars in cash at any given time, and this bill seeks to streamline the cash operations and process the money in a new way.

“Duffel bags and sometimes suitcases of cash would arrive quarterly at some of our designated offices and some business owners had to drive 350 miles to pay their taxes,” said Fiona Ma, who is the California State Treasurer.