Louisiana has taken a significant step towards embracing digital currencies by offering residents the option to make payments to state agencies using Bitcoin and Circle’s stablecoin USDC. This new payment option was announced in a press release on September 18.
The Louisiana Department of Wildlife and Fisheries will be the first agency to accept cryptocurrency payments, with the potential for other state departments to follow suit in the future. Secretary Madison Sheahan expressed that providing digital payment options aligns with the department’s commitment to enhancing customer service.
In a groundbreaking development, the Louisiana Department of Wildlife and Fisheries has already processed its first payment through the new system, receiving a payment via the Bitcoin Lightning network.
Louisiana State Treasurer John Fleming emphasized that the transition to accepting cryptocurrency payments aims to offer residents more flexibility while safeguarding the state from the volatility of crypto markets. To mitigate risk, payments made in crypto will be converted into US dollars at the time of the transaction.
Fleming stated, “By introducing cryptocurrency as a payment option, we are providing another way for citizens to interact with state services while maintaining safeguards to ensure the state’s financial stability.”
The implementation of this system will be facilitated by Bead Pay, a company specializing in crypto payments. Bead Pay will handle the conversion of digital currencies into US dollars, with the state refraining from holding cryptocurrency directly. Funds from crypto payments will be deposited into state accounts similar to traditional debit or credit card transactions.
State Representative Mark Wright (R-Covington), a supporter of digital assets legislation, welcomed the expansion of payment options, emphasizing that this move represents progress in offering new technologies for residents to engage with state government.
Louisiana’s decision to accept crypto payments for state services comes in the wake of a series of pro-crypto policies enacted by the state government. Governor Jeff Landry signed a bill earlier this year that banned central bank digital currencies (CBDCs) and protected residents’ rights to self-custody and mine cryptocurrencies.
The legislation, HB 488, not only prohibited state authorities from participating in federal tests related to CBDCs but also ensured that individuals and businesses could freely use and store crypto. It also safeguarded home and commercial crypto mining activities, positioning Louisiana as a state that is open to innovation in the digital asset space.
This latest initiative to integrate cryptocurrency payments with state services underscores Louisiana’s broader commitment to embracing digital financial technologies while upholding regulatory oversight. The state is paving the way for a more inclusive and technologically advanced financial ecosystem.