Louisiana First U.S. State to Accept Cryptocurrency for Government Services
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Louisiana became the first U.S. state to accept cryptocurrency for government services on September 17, 2024, according to a press release from Louisiana State Treasurer John Fleming. Residents can now pay using bitcoin, Bitcoin
Bitcoin
Lightning, and USD Coin from private crypto wallets.
The first cryptocurrency payment was processed on September 17, 2024 by the Louisiana Department of Wildlife and Fisheries. The state is partnering with Bead Pay, a cryptocurrency payment processor, to convert incoming crypto payments into U.S. dollars before depositing them into state accounts.
“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 said in a statement.
Key benefits of the new system, according to the state treasury, include:
Reduced fraudulent transactions
Protection from cryptocurrency price volatility
Compatibility with any digital wallet supporting the accepted cryptocurrencies
The state receives all payments in U.S. dollars
This development comes three months after Louisiana passed House Bill 488, which was signed into law on June 19, 2024. According to a Forbes article by Susie Violet Ward, HB 488 established legal protections for bitcoin users and miners, while banning the use of Central Bank Digital Currencies for state payments.
The bill included provisions for the right to self-custody digital assets, transactional freedom with bitcoin, support for bitcoin mining in industrial areas, and a ban on CBDCs. Representative Mark Wright, who sponsored the bill, told Ward, “It’s important to me that we create a welcome economic environment for innovation and investment.” The acceptance of cryptocurrency payments for state services appears to be a practical implementation of the pro-cryptocurrency stance Louisiana took with HB 488.
Growing Recognition Of Blockchain Technology Across The US
Louisiana’s move is part of a broader trend in state-level cryptocurrency policy developments across the United States. According to an article by Peter Herzog on the Crypto Council for Innovation website, over 80 bills spanning 26 states were introduced in January 2024 alone. This surge in legislative activity coincided with the SEC’s approval of several bitcoin ETFs on January 10, 2024.
Herzog reports that other states are also taking significant steps in crypto regulation and adoption. States like New York, Virginia, and New Jersey have introduced legislation aimed at increasing awareness of blockchain technology through public-private task forces, commissions, and financial literacy initiatives.
Additionally, South Dakota, New Hampshire, and Maine are considering updates to their money transmitter statutes, focusing on digital asset provisions. These developments indicate a growing recognition of the importance of cryptocurrency and blockchain technology at the state level across the U.S.
According to an article by Makoto Takahiro on DAO Times Wyoming became the first U.S. state to provide a legal framework for blockchain-based nonprofit organizations. The Wyoming Decentralized Unincorporated Nonprofit Association Act, which took effect on July 1, 2024, establishes a structure for Decentralized Unincorporated Nonprofit Associations. This legislation allows DUNAs to use blockchain technology and smart contracts for governance and operations, granting them legal entity status and liability protection for members.
The growing influence of cryptocurrency in U.S. politics is clear from recent surveys and voter behavior. Cryptocurrency has become a bipartisan issue, with ownership and party support evenly spread across political lines. With most Gen Z Americans now owning cryptocurrency, crypto policy is likely to affect voting behavior more, potentially shaping future elections and policy decisions.
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Publish date : 2024-09-19 05:31:00
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