Existing law generally prohibits a person from engaging in the business of money transmission without a license from the Commissioner of Business Oversight. Existing law defines money transmission as selling or issuing payment instruments, selling or issuing stored value, and receiving money for transmission. Existing law, the Uniform Commercial Code, among other things, regulates the issuance and transfer of securities and prescribes rules pursuant to which entitlements for securities held by a securities intermediary are to be determined. Existing law prohibits a corporation, social purpose corporation, association, or individual from issuing or putting in circulation, as money, anything but the lawful money of the United States.

This bill would authorize a private or public entity in the state to accept virtual currency, as defined, as a method of payment for the provision of any good or service, including any governmental service. The bill would define public entity for these purposes to include the state and every state entity, including the Legislature, the judicial branch, the University of California, and the California State University, and a political subdivision of the state, including a city, county, city and county, charter city, charter county, school district, community college district, joint powers authority, joint powers agency, and any public agency, authority, board, commission, or district.