California Greenlights Crypto Payments for State Fees and Transactions
California advances towards crypto acceptability for state transactions - Bill gains universal approval!
In a major leap for cryptocurrency adoption, the California State Assembly has unanimously endorsed a groundbreaking bill that would let state bodies accept digital currency payments.
California’s Progress with AB 1180
With a 68-0 vote, Assembly Bill 1180 (AB 1180) is now moving to the Senate for further review. Democratic Assembly member Avelino Valencia sponsored this trailblazing bill, which intends to establish a pioneering pilot program to enable digital currency transactions for state fees and various transactions.
The bill mandates the Department of Financial Protection and Innovation (DFPI) to develop regulatory guidelines under the Digital Financial Assets Law (DFAL) to facilitate the introduction of this new payment method.
Reacting to the bill, Valencia stated,
"I'm pleased to introduce AB 1180, which would establish a pilot program authorizing the DFPI to accept digital financial assets for payment."
How will this shift California's crypto mindset?
Under the bill’s provisions, the DFPI must submit an informative report to the legislature no later than 01 January 2028.
This report will contain critical insights on cryptocurrency transactions, any technical hurdles faced, and recommendations to promote the broader adoption of digital asset payments across additional state agencies.
The bill also includes a sunset clause, meaning it will automatically expire on 01 July, 2031, unless prolonged.
Unlike past initiatives such as AB 953 in 2019 and SB 1275 in 2022, AB 1180 targets a narrower group of regulated payees, focusing primarily on businesses engaged in cryptocurrency activities.
The bill explains,
"This move allows the state to assess if there are any issues that might arise when deploying this payment option."
Not a pioneering California move!
California is not the first state to take the path of accepting cryptocurrency payments. It joins Florida, Colorado, and Louisiana, which have already enabled such payments for specific obligations.
presently, around 117 merchants in California accept Bitcoin [BTC] payments — a sign of growing crypto adoption.
This trend implies that the momentum for crypto usage continues to gather nationwide attention, especially after former President Donald Trump showed interest in Bitcoin reserves.
Several states, including New Hampshire, Arizona, and Texas, have passed legislation to create state Bitcoin reserves. Meanwhile, Florida, South Dakota, and Wyoming have dismissed similar bills.
In light of this escalating enthusiasm, Coinbase founder Brian Armstrong has voiced concerns that escalating fiscal debt could position Bitcoin to become the world's next reserve currency.
Stay Updated
Subscribe to our must-read daily newsletter
Following Bitcoin’s dominance? Here's how investors can stay prepared
Can BNB touch new heights? Two factors hint at a bullish outlook
- The surge in cryptocurrency adoption continues, as California, following states like Florida, Colorado, and Louisiana, has moved to accept digital currency payments for state fees and transactions, intending to assess potential issues and promote broader adoption.
- In the burgeoning realm of cryptocurrency finance and business, California's new pilot program, made possible by Assembly Bill 1180, targets businesses engaged in cryptocurrency activities, emulating the trends set by states like New Hampshire, Arizona, and Texas, which have created state Bitcoin reserves.
- Amid ongoing interest in Bitcoin from former President Donald Trump and several states, Coinbase founder Brian Armstrong predicts that escalating fiscal debt could lead Bitcoin to become the world's next reserve currency, signaling the growing impact of technology on global finance and business.
