Dive Brief:

• Under a new law signed Saturday by Governor Jerry Brown, bitcoin and other alternative currencies are now legal in California.

• The law undoes the previous prohibition in the state against using "anything but the lawful money of the United States." Its sponsor, a Democratic assemblyman, says the state’s prohibition against digital currencies was impractical in the face of its growing acceptance by businesses.

• Meanwhile, e-retailer Newegg announced Tuesday that, in a move to satisfy the demands of its tech-inclined electronics customers, it is now accepting bitcoin via wallet BitPay. And in a startling post, tech blogger Brian Krebs revealed that extortionists are attempting to blackmail some small businesses into using bitcoin.

Dive Insight:

Bitcoin got this year off to a shaky start, suffering from a major hacking as well as increased regulations from various governments. 

But it’s summer, and the paying is easier. California is the world’s 8th largest economy. The state will no doubt regulate bitcoin in some way, as the U.S. and other countries have begun to do. Still, California’s blessing opens huge opportunities for digital currencies.