In what is considered a landmark event, Louisiana has become the first US state to accept cryptocurrency payments for certain state services.
State Treasurer John Fleming shared the news, noting that starting residents can now use Bitcoin, Bitcoin’s Lightning Network, and USDC to pay for select services.
Louisiana First in the US to Accept Crypto Payments for State Services
“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,” Fleming noted. Interestingly, the first crypto payment has already been made. It involved the Louisiana Department of Wildlife and Fisheries and was done using Bitcoin’s Lightning Network.
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
According to the announcement, Louisiana’s crypto payment system is supported by a partnership with Bead Pay and other local partners. The goal is to reduce fraud and give residents greater financial freedom. Despite accepting crypto payments, Louisiana does not plan to hold onto crypto assets. Instead, it will convert all crypto payments into U.S. dollars to avoid the fluctuating nature of cryptocurrencies.
Louisiana has come a long way in embracing cryptocurrencies. Its decision to accept crypto payments is a significant move for the broader adoption of crypto in the U.S. It not only highlights the growing acceptance of digital currencies but also sets an example for other states to follow.
North Carolina moves to ban CBDCs
North Carolina has paused plans on launching a central bank digital currency (CBDC) due to privacy concerns. The state’s Senate recently overruled the governor’s veto. And introduced a law that blocks the use of CBDCs for state payments. The move also prevented the Federal Reserve from testing a CBDC in North Carolina.
The US currently lags in the CBDC race. While no major economy has launched a CBDC, the US appears distant in the conversation.
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