Cash News
Louisiana has set a record by becoming the first state to accept cryptocurrency payments for state services. State Treasurer John Fleming said that starting September 17, residents can pay for some state services using Bitcoin, Bitcoin Lightning Network, and USD Coin.
The first payment was made to the Louisiana Department of Wildlife and Fisheries using Bitcoin’s Lightning Network. Developed through a partnership with Bead Pay and local partners, this option aims to cut fraudulent transactions and offer more freedom to citizens.
Dr. Fleming, said, “In today’s digital age, government systems must evolve and embrace new technologies. By introducing cryptocurrency as a payment option, we’re not just innovating; we’re providing our citizens with flexibility and freedom in interacting with state services.”
While the state will accept payments in crypto, it will then convert such payments into U.S. dollars to avoid being affected by the fluctuations in the crypto market. This conversion process helps to overcome the issues related to the stability of accepting digital currencies.
Republican State Representative Mark Wright, who spearheaded the effort, showed interest in increasing the range of payment methods in Louisiana. Wright had established a digital assets working group in 2022, which determined that crypto payments would be feasible. He also sponsored a 2021 resolution to honor the creator of Bitcoin, Satoshi Nakamoto.
Louisiana has also amended its laws to prohibit the use of CBDCs but has not limited the use of other digital currencies for payments. This move is in line with the state’s policy to adopt new technologies as it seeks to balance its finances.
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