The Louisiana state government has started accepting cryptocurrency payments in exchange for state services, the state’s treasurer announced this week.
Residents will now be able to pay for state services with cryptocurrencies like Bitcoin and USDC, a “stablecoin” that’s value is pegged to the dollar.
“Louisiana residents will now have the option to pay for state services from their private, secure crypto wallets,” a press release from Louisiana Treasurer John Fleming explains. “In today’s digital age, government systems must evolve and embrace new technologies. 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 went on to note.
The first use of cryptocurrency for state services occurred on Tuesday, when cryptocurrency was sent to the Louisiana Department of Wildlife and Fisheries. The state is using a service that immediately converts cryptocurrency sent to the government into dollars, a move that Fleming says “protects our state from any volatility associated with cryptocurrency.”
The conversion service will be offered by Bead Pay, a company that is, according to CEO Jay Sykes, “focused on removing the traditional barriers associated with cryptocurrency, such as volatility and fraud risks, making it a reliable option for government transactions.”
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The decision from Louisiana comes as Bitcoin, the largest cryptocurrency, has been greeted with widespread institutional adoption this year, with asset managers like Van Eck and Blackrock even having Bitcoin exchange-traded funds approved by the Securities and Exchange Commission. The flagship digital asset is up roughly 130 percent over the last 12 months at the time of writing, with Bitcoin hitting a new all-time high of just over $73,000 in mid-march.
Former President Donald Trump has also come out in support of the cryptocurrency industry as he campaigns for president and spoke at the annual Bitcoin Conference, where he outlined his plans to “ensure that the United States will be the crypto capital of the planet.”
“Bitcoin stands for freedom, sovereignty, and independence from government,” Trump went on to say at the event, which also featured speeches from Sen. Marsha Blackburn (R-TN), Sen. Bill Hagerty (R-TN), and Vivek Ramaswamy.
