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Michigan Senate hears testimony on cryptocurrency bill

A Bitcoin logo on a window at La Maison du Bitcoin in Paris in a photo from January
Geoffrey Van Der Hasselt
/
AFP/Getty Images
A Bitcoin logo on a window at La Maison du Bitcoin in Paris in a photo from January

Michigan would consider the use of cryptocurrency and blockchain technology under a bill before a state Senate committee.

Cryptocurrencies are decentralized forms of digital money that are not backed by a third party — like a government or central bank. Blockchain powers them.

The proposal would create a commission to recommend policies for how the state should handle cryptocurrencies like Bitcoin.

Republican Senate Majority Leader Mike Shirkey says topics could range from tax policy to allowing new retirement investments. “The legislation as it’s proposed is intended to make recommendations so that Michigan is not an obstacle to the development of the technology. That’s really what the intent is,” he says.

Supporters point to cryptocurrencies as the way of the future. But concerns have arisen over their volatility and environmental impact.