Louisiana Makes History by Accepting Cryptocurrency Payments for Government Services
In a groundbreaking move, Louisiana has become the first US state to accept cryptocurrency payments for government services, effective September 17, 2024. The announcement was made by Louisiana State Treasurer John Fleming, who hailed the development as a step forward in innovation and flexibility for state services.
Citizens can now pay for state services using widely used cryptocurrencies, including Bitcoin, Bitcoin Lightning, and USD Coin, from private crypto wallets. On 17 September 2024, the Louisiana Department of Wildlife and Fisheries was the first to process a cryptocurrency payment.
Assisting in this process is Bead Pay, a cryptocurrency payment processor that converts incoming crypto payments into U.S. dollars before depositing them into state accounts. "This isn't just innovation; it's giving freedom and the flex to interact with state services," Fleming explained.
Benefits of the new system include:
· *Fraudulent transactions
· *Cryptocurrency price volatility
· *Any digital wallet that accepts the cryptocurrencies
· *The state shall make all payments in U.S. dollars
This development comes three months after Louisiana approved House Bill 488, which creates legal protections for bitcoin users and miners but keeps Central Bank Digital Currencies off-limits to state payments. The bill addresses the right to self-custody digital assets, freedom to transact with Bitcoin, support for Bitcoin mining in industrial areas, and outlawing CBDCs.
Representative Mark Wright, who sponsored the bill, says it is important to create an open economic environment toward innovation and investment. The permission of cryptocurrency payment for state services is therefore another no-brainer implementation of the pro-cryptocurrency position Louisiana took in advocating HB 488.
It is expected that the impact of such a move would certainly be to significantly open up avenues for cryptocurrency adoption while at the same time further consolidating the position of Louisiana as a hotspot for innovation and investment in the digital assets sector.
