Louisiana has become the first U.S. state to officially accept cryptocurrency payments for state services, following a recent announcement by State Treasurer John Fleming.
As of September 17, residents can now use Bitcoin, the Bitcoin Lightning Network, and USD Coin (USDC), a US dollar-pegged stablecoin, to pay for services through any crypto wallet.
The state's first crypto transaction, a payment to the Louisiana Department of Wildlife and Fisheries, was processed using the Bitcoin Lightning Network.
New Payment Flexibility for Residents
Treasurer Fleming highlighted that the introduction of crypto payments marks a significant step towards modernising state services. In collaboration with Bead Pay and other local partners, the state aims to reduce fraudulent transactions and provide citizens with more flexibility.
The funds received will still be converted into U.S. dollars, protecting Louisiana from volatility associated with cryptocurrency.
By integrating cryptocurrency payments, the state offers an innovative option to its residents without deviating from its current financial infrastructure.
related reading：North Carolina Bans Central Bank Digital Currencies: A Blow to Federal Reserve Plans
Legislative Support for Crypto
The push for crypto payments was led by Republican State Representative Mark Wright, who expressed excitement over the state’s expanding payment options.
Wright has been a long-time supporter of digital assets, having set up a digital assets working group in 2022, which deemed crypto a viable payment method.
He also led a resolution in 2021 recognising Bitcoin’s anonymous creator, Satoshi Nakamoto, for contributing to economic security.
Crypto Regulations in Louisiana
While Louisiana embraces cryptocurrency payments, the state maintains a cautious stance on other forms of digital currency. In June, Louisiana passed legislation banning central bank digital currencies (CBDCs) from being tested or accepted within the state.
However, this ban does not extend to cryptocurrencies like Bitcoin or stablecoins like USDC, which remain acceptable forms of payment under the new legislation.
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