Highlights:
- Louisiana leads as the first U.S. state to accept cryptocurrency for government services.
- The initial crypto transaction was processed for a fine via the Bitcoin Lightning Network.
- This innovative step aims to enhance citizen flexibility and modernize state interactions.
Louisiana has become the first state in the US to accept cryptocurrency as payment for government services. Louisiana State Treasurer John Fleming announced that starting September 17, residents can use Bitcoin, Bitcoin Lightning Network, and USDC to pay for various state services.
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LOUISIANA STATE GOVERNMENT ACCEPTS FIRST CRYPTOCURRENCY PAYMENThttps://t.co/C9NqQbpEyo
Louisiana State Treasurer, John Fleming, M.D. announces an innovative transition with state government's plan to accept cryptocurrency as a valid form of payment. pic.twitter.com/b9B0OK7Al9
— John Fleming, MD Louisiana State Treasurer (@LATreasury) September 18, 2024
The first cryptocurrency transaction, a fine payment to the Louisiana Department of Wildlife and Fisheries, was already processed using the Bitcoin Lightning Network. This new payment option, created through a collaboration with Bead Pay and local partners, aims to reduce fraudulent transactions and provide greater flexibility for citizens.
Secretary Madison Sheahan of the Louisiana Department of Wildlife and Fisheries stated:
“Offering our sportsmen more ways to interact with our department allows for us to enhance our customer service. This is another step towards our goal of creating a modern and professional organization that better serves the sportsmen of the state.”
Government to Receive Crypto Payments in Fiat Currency
According to Fleming, the government will convert the cryptocurrency payments into US dollars, so the funds will remain in fiat. However, he highlighted that this approach “protects the state from previous concerns about accepting cryptocurrency.”
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.”
The announcement has been met with enthusiasm. Republican State Representative Mark Wright, who championed the initiative, expressed his excitement, stating he was “thrilled to see Louisiana further expanding its payment options.”
Louisiana Updates Digital Currency Laws: Bans CBDCs, Supports Other Cryptos
Alongside accepting crypto payments, Louisiana has also updated its laws on digital currencies. In June, the state enacted legislation to ban central bank digital currencies (CBDCs) and establish regulations for crypto miners and node operators. The law prohibits the state from using CBDCs but allows other forms of digital currency payments.
Fleming noted that both Americans and Louisianians are keen on digital currency, provided it isn’t government-controlled. He highlighted that the crypto market is set to reach $7.5 trillion by 2028, showing substantial growth and increasing interest.
Growing Crypto Momentum: States and Leaders Embrace Digital Currency
Republican lawmakers are increasingly embracing cryptocurrency, spurred by Donald Trump’s strong push for the industry. This week, Trump, the Republican Presidential nominee, launched his DeFi crypto project, World Liberty Financial.
Wyoming Senator Cynthia Lummis has expressed concerns about the SEC’s overreach into the crypto industry. While Democrats criticize crypto legislation like FIT 21 and the rollback of SAB 121 as “extreme MAGA Republican” measures, Lummis has suggested that Bitcoin could eventually become a strategic reserve.
Spooky… “extreme MAGA Republican” looking to address agency overreach in an esoteric accounting bulletin with bipartisan majorities in both House and Senate.
Wait til they hear about the Bitcoin Strategic Reserve. https://t.co/D3MKBF7wlg
— Cynthia Lummis 🦬 (@CynthiaMLummis) September 19, 2024
Last month, Cynthia Lummis introduced a major pro-Bitcoin bill, hinting that Wyoming might soon adopt Bitcoin payments for state services. Massachusetts is also a state to watch, with pro-crypto lawyer John Deaton challenging anti-crypto Senator Elizabeth Warren in this year’s Presidential Elections. Deaton has long defended crypto and recently criticized Warren for supporting banks.
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