Louisiana Accepts Cryptocurrency Payments, Becoming the First State to Do So
- WBOYOriginal
- 2024-09-19 15:12:14593browse
State Treasurer John Fleming said that starting September 17, residents can pay for some state services using Bitcoin, Bitcoin Lightning Network, and USD Coin.
Louisiana has become the first state in the United States to accept cryptocurrency payments, with state Treasurer John Fleming announcing on September 17 that residents can now pay for certain 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. This option was developed through a partnership with Bead Pay and local partners, and it aims to reduce fraudulent transactions and offer more freedom to citizens.
“In today’s digital age, government systems must evolve and embrace new technologies,” Dr. Fleming said. “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 state will accept payments in cryptocurrency, but 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 spearheaded the effort to legalize crypto payments in Louisiana. He showed interest in expanding the range of payment methods in the state, having established a digital assets working group in 2022. The working group determined that crypto payments would be feasible.
Wright also sponsored a 2021 resolution to honor the creator of Bitcoin, Satoshi Nakamoto.
Louisiana has also amended its laws to prohibit the use of central bank digital currencies (CBDCs), but it 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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