The Louisiana government has made its first cryptocurrency payment transaction, after the state Treasurer announced that residents will have the option to pay for state services with certain cryptocurrencies.
Louisiana residents can now use any cryptocurrency wallet to pay with Bitcoin (BTC), Bitcoin’s Lightning network, and the USD-pegged stablecoin USD Coin (USDC), state Treasurer John Fleming announced on September 17.
The state's first cryptocurrency payment transaction has been made — for a fine sent to the Louisiana Department of Wildlife and Fisheries via Bitcoin's Lightning network.
Source: John Fleming
Louisiana’s adoption of cryptocurrency payments is the result of a collaboration between the state, Bead Pay, and state-based integration partners, which will help “minimize the number of fraudulent transactions,” Fleming said.
“In today's digital age, government systems need to evolve and adopt new technology,” he said.
“By introducing cryptocurrency as a payment option, we are not only innovating; we are also providing flexibility and freedom for citizens in interacting with state services.”
Fleming was quick to note that the money the government receives will still be in fiat, as the service will convert crypto payments into USD, which “protects the state from previous concerns about accepting crypto.”
Republican state representative Mark Wright — who is leading the effort to get the state to accept cryptocurrency — said he is “excited to see Louisiana continue to expand payment options.”
In May 2022, Wright formed a working group on digital assets, which found early last year that cryptocurrencies would be an acceptable form of payment.
Wright also led a 2021 Louisiana House resolution praising anonymous Bitcoin founderSatoshi Nakamoto for his “contribution to economic security.”
In June, Louisiana amended its laws to ban central bank digital currencies (CBDCs) and establish regulations for cryptocurrency Miners and node operators.
The law prohibits the state from engaging in experiments giving, accepting or demanding payments using CBDCs , but does not prohibit payments in other cryptocurrencies.
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