Louisiana has implemented a new option for residents to make payments to state agencies using Bitcoin and Circle's stablecoin USDC, according to a Sept. 18 press release.
The Louisiana Department of Wildlife and Fisheries will be the first agency to accept these payments, with the possibility of expansion to other state departments in the future. Secretary Madison Sheahan said offering digital payment options aligns with the department's goal of enhancing customer service.
The Louisiana Department of Wildlife and Fisheries has already processed the first payment through the new system and received a payment via the Bitcoin Lightning network.
Louisiana State Treasurer John Fleming said the transition aims to provide residents with more flexibility while ensuring that the state remains protected from the volatility of crypto markets. As such, payments made in crypto will be converted into US dollars at the time of the transaction.
Fleming said:
"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 system will be supported by Bead Pay, a company specializing in crypto payments. The firm will facilitate the conversion of digital currencies into US dollars. The state will not hold cryptocurrency directly, and funds will be deposited into state accounts similarly to traditional debit or credit card transactions.
State Representative Mark Wright (R-Covington), who has been a proponent of digital assets legislation, welcomed the expansion of payment options, saying:
"This is a positive step forward in offering new technologies for residents to engage with state government."
The move to accept crypto payments for state services follows a series of pro-crypto policies by the Louisiana government. Earlier this year, Louisiana Governor Jeff Landry signed a bill banning central bank digital currencies (CBDCs) and safeguarding the rights of residents to self-custody and mine crypto.
The bill, HB 488, prohibited state authorities from participating in federal tests related to CBDCs and ensured that individuals and businesses could freely use and store crypto. The legislation also protected home and commercial crypto mining activities, positioning Louisiana as a state open to innovation in the digital asset space.
The latest move to integrate cryptocurrency payments with state services builds on this momentum, highlighting the state's broader commitment to embracing digital financial technologies while balancing regulatory oversight.