Louisiana Accepts Cryptocurrency Payments, Residents Can Pay Fines with BTC and USDC

Louisiana State Treasurer John Fleming recently announced that residents can now use Bitcoin, Bitcoin Lightning Network, and USDC to pay for various state services. This makes Louisiana the latest U.S. state government to accept cryptocurrency payments.

Receiving Bitcoin Will Be Converted to USD, Louisiana's First Cryptocurrency Payment Completed

"In today's digital age, government systems must evolve and embrace new technologies," said John Fleming. "By introducing cryptocurrency as a payment option, we are not only innovating; we are also providing our citizens with flexibility and freedom to interact with government services."

It is reported that Louisiana's first cryptocurrency payment has been processed, paying fines to the Louisiana Department of Wildlife and Fisheries through the Bitcoin Lightning Network. John Fleming attributed this development to the collaboration between the state government, Bead Pay, and local partners. He stated that the purpose of this initiative is to modernize the payment system and reduce fraudulent transactions.

Although the state accepts cryptocurrency as a form of payment, the funds received will be converted to USD. This approach aims to protect the country from the volatility associated with cryptocurrencies. At the same time, this measure also alleviates some concerns of cryptocurrency enthusiasts about Bitcoin's centralization. According to Arkham data, the U.S. federal government holds approximately 200,000 BTC. Despite the separation between state and federal governments, concerns about government control over Bitcoin still exist.

Republican Legislator Leads Efforts to Pass Cryptocurrency Payments in Louisiana

"I am pleased to see Louisiana further expand its payment options," said Republican State Representative Mark Wright in a press release. Mark Wright, who has long been involved in U.S.-Taiwan relations, is one of the key figures behind the promotion of cryptocurrency payments in Louisiana, having also pushed for the passage of the Taiwan-friendly resolution in the Louisiana State House and Senate.

Mark Wright has been an advocate for cryptocurrency and blockchain technology. In 2021, he introduced a resolution in the Louisiana State House praising the anonymous Bitcoin creator, Satoshi Nakamoto, for their contributions to economic security. In May 2022, he established a digital asset working group, concluding that cryptocurrency would be an acceptable form of payment in the state.

Republican-Led States More Crypto-Friendly? Open Crypto Payments Declaration Announced

Louisiana is not the only state that allows the use of cryptocurrency for payments. In 2018, Ohio began accepting cryptocurrency for tax payments through OhioCrypto.com. Businesses can pay 23 types of taxes using Bitcoin, which is converted to USD through BitPay before entering the treasury.

However, in 2019, the Ohio Attorney General claimed that the State Treasurer had no authority to launch the program without committee approval and did not follow the bidding process required by payment processors. The program was shut down within a year, with less than 10 companies using it.

In the same year, the Seminole County Tax Collector in Florida began accepting cryptocurrency payments through BitPay. The tax collector was later found to have used public funds to support his own blockchain company and was indicted by the Department of Justice.

In March 2022, Florida Governor Ron DeSantis pledged to allow businesses to pay taxes in cryptocurrency. The aim is to make Florida a crypto-friendly state and encourage fintech innovation.

States like Colorado and Utah have also adopted similar tax payment methods. Interestingly, except for Colorado, the states that allow cryptocurrency payments mentioned above are predominantly traditional Republican strongholds. Louisiana, with a red dominance from the government to the state legislators, further deepens the public's association of the Republican Party with crypto-friendliness.