The government of Louisiana received its first cryptocurrency payment after the state Treasurer declared that citizens would have the opportunity to pay for state services using selected crypto.
The first crypto transaction was already processed using the Bitcoin Lightning Network for a fine paid to the Louisiana Department of Wildlife and Fisheries. This significant step is the result of collaboration between the state, Bead Pay, and local integration partners.
According to the state’s Treasurer, John Fleming, Louisiana’s acceptance of crypto payments results from a collaboration between the state, Bead Pay, and integration partners based in the state. He notes that this innovation has many benefits, including reducing fraudulent transactions. Additionally, it would allow citizens more flexibility in interacting with state services.
‟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.”
– John Fleming
The government will ultimately receive the payments in fiat currency
Per Fleming, the money received by the government will still be in fiat, as the service converts the crypto payments into US dollars. Still, he noted that the move “protects the state from previous worries about accepting cryptocurrency.”
The development was received with excitement. The Republican State Representative, Mark Wright, who spearheaded the move for the state to take cryptocurrencies, said he was “thrilled to see Louisiana further expanding its payment options.”
Wright established a digital assets working group in May 2022, concluding that cryptocurrency could be an acceptable payment method. He also led a 2021 resolution that praised Bitcoin’s anonymous creator, Satoshi Nakamoto, for their “contribution to economic security.”
In June, Louisiana enacted legislation banning central bank digital currencies (CBDCs) and set rules for crypto miners and node operators.Â
The law prohibits the state from participating in CBDC trials, accepting CBDCs, or requiring payments in CBDCs but allows for other forms of digital currency payments.
Fleming believes blockchain integration will strengthen Louisiana’s financial infrastructure
In addition to incorporating cryptocurrencies, Fleming envisions using digital technologies to strengthen the state’s financial infrastructure, such as studying blockchain technology. “By implementing such technologies, Louisiana may establish an example for other states seeking to innovate in government operations.”
According to Fleming, the American people and people in Louisiana are interested in digital currency as long as it’s not a government-controlled digital currency. He pointed out that the crypto market is expected to reach $7.5 trillion by 2028, indicating significant growth and increased interest in the coming years.
