Louisiana accepts cryptocurrency payments for state services
According to Cointelegraph, the Louisiana government has taken a major step by accepting its first-ever cryptocurrency payment. State Treasurer John Fleming announced that residents now have the option to pay for state services using Bitcoin (BTC), the Bitcoin Lightning Network, and the U.S. dollar-pegged stablecoin USD Coin (USDC). This development marks a new era for the state, which is embracing digital currencies for public transactions.
The inaugural crypto payment was processed to pay a fine targeted at the Louisiana Department of Wildlife and Fisheries via Bitcoin’s Lightning Network. Fleming highlighted that this initiative is the result of collaboration between the state, Bead Pay, and other integration partners. He emphasized that this move is aimed at reducing fraudulent transactions and modernizing government systems to align with the digital age. Fleming stated, “By introducing cryptocurrencies as a payment option, we are not just innovating; we are giving our citizens flexibility and freedom to interact with state services.” He also assured that the state would receive the payments in fiat currency as the service converts crypto payments into US dollars, thus mitigating previous concerns about accepting cryptocurrencies. Republican state representative Mark Wright, who led the effort to get the state to accept cryptocurrencies, expressed his excitement about the expanded payment options. Wright had created a task force on digital assets in May 2022, which concluded that cryptocurrencies would be a viable form of payment. He also spearheaded a 2021 Louisiana House resolution recognizing the contributions of Bitcoin’s anonymous inventor, Satoshi Nakamoto, to economic security. In addition to accepting cryptocurrency payments, Louisiana has also taken legislative action regarding digital currencies. In June, the state amended its laws to ban central bank-issued digital currencies (CBDCs) and set regulations for cryptocurrency miners and node operators. The legislation prohibits the state from participating in trials to accept or require payments using a CBDC, but does not prohibit other forms of digital currency payments.
