The Louisiana state government has officially begun accepting cryptocurrency payments, becoming the latest U.S. state to adopt digital currencies for state services.
Earlier this week, Louisiana State Treasurer John Fleming announced that residents can now use multiple digital assets to pay for various state services. Accepted payment methods include Bitcoin (BTC), Bitcoin Lightning Network, and the USD-pegged stablecoin USDC.
The state government confirmed processing its first crypto payment—a fine paid to the Louisiana Department of Wildlife and Fisheries via the Bitcoin Lightning Network. According to Fleming, this milestone resulted from collaborations between the state government, Bead Pay, and local integration partners. He emphasized that the initiative aims to modernize payment systems and reduce fraudulent transactions.
"In today’s digital age, government systems must evolve and embrace new technologies," Fleming stated. "By introducing cryptocurrency as a payment option, we’re not just innovating—we’re giving our citizens flexibility and freedom in interacting with state services."
Fleming clarified that while the state accepts crypto payments, received funds are immediately converted to U.S. dollars. This approach shields the state from crypto market volatility and addresses prior concerns about digital asset adoption.
This isn’t the first time Louisiana lawmakers have embraced cryptocurrency.
Republican State Representative Mark Wright, a key figure in advancing crypto acceptance in Louisiana, endorsed the new payment option. "I’m thrilled to see Louisiana expand its payment options further," Wright said in a press release this week. In May 2022, Wright established a Digital Asset Task Force, which concluded that cryptocurrencies would become an acceptable payment method for state services.
A longtime advocate of blockchain technology, Wright championed a 2021 Louisiana House resolution praising Bitcoin’s anonymous creator, Satoshi Nakamoto, for contributions to "economic security."
Other U.S. States Accepting Crypto Payments
Louisiana joins a growing list of states exploring cryptocurrency integration into government operations.
👉 Discover how states are leveraging blockchain technology
- Ohio (2018): Briefly accepted crypto for tax payments via OhioCrypto.com (now defunct). Businesses could pay 23 types of taxes with Bitcoin, converted to USD via BitPay. The program shut down within a year after the Attorney General ruled it lacked proper approvals and competitive bidding processes. Fewer than 10 companies used the system.
- Florida (2018): Seminole County’s Tax Collector’s Office accepted crypto via BitPay. The initiative ended after the Tax Commissioner was sued by the DOJ for misusing public funds to fund his blockchain company. In March 2022, Governor Ron DeSantis pledged to let businesses pay state taxes in crypto, aiming to position Florida as a crypto-friendly hub.
- Colorado (2022): Announced crypto tax payments, requiring residents to hold "the full invoice value in a single cryptocurrency within PayPal’s crypto hub."
- Utah (2022): Passed a bill allowing state agencies to accept crypto for taxes starting in 2023. Similar proposals emerged in Arizona, California, Hawaii, Illinois, New York, Oklahoma, and Wyoming but never passed.
- California (2023): While not accepting crypto payments directly, its DMV began using blockchain as an immutable database for vehicle registrations to enhance security and efficiency.
Federal-Level Momentum
In June 2024, Florida Rep. Matt Gaetz proposed a bill allowing Americans to pay federal income taxes with Bitcoin, citing modernization and U.S. technological leadership as key motivators.
FAQ
Q: Which states currently accept Bitcoin for taxes?
A: As of 2024, Louisiana, Colorado, and Utah accept crypto for select payments. Florida permits business tax payments in crypto.
Q: Are crypto payments converted to USD?
A: Yes. States typically convert crypto to USD instantly to avoid volatility risks.
Q: Why did Ohio’s program fail?
A: It lacked proper approvals and competitive bidding for payment processors, leading to its termination.
👉 Explore crypto adoption trends in government
Note: Edited by Stacy Elliott. Disclaimer: This article represents the author’s views only and does not constitute investment advice.
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