California moves to accept crypto for state payments – Bill passes unanimously!

• California advanced AB 1180 to enable crypto payments for state fees and transactions
• Growing state support for Bitcoin reserves is a sign of rising adoption amid regulatory debates

The California State Assembly has unanimously approved a groundbreaking bill that would allow state agencies to accept cryptocurrency payments.

California advances AB 1180

Passed with a 68-0 vote, Assembly Bill 1180 (AB 1180) will now move to the Senate for further consideration.

Spearheaded by Democratic Assembly member Avelino Valencia, the bill aims to establish a pioneering pilot program to enable the use of digital currencies for state fees and transactions.

It also mandates the Department of Financial Protection and Innovation (DFPI) to develop regulatory guidelines under the Digital Financial Assets Law (DFAL) to facilitate this new payment method.

Remarking on the same, Valencia said, 

“I proudly rise to present AB 1180 that would establish a pilot program authorizing the Department of Financial Protection and Innovation to allow for the payment of fees using digital financial assets.”

How will it change the way California thinks about crypto?

Under the bill’s provisions, the DFPI must submit a comprehensive report to the legislature no later than 01 January 2028.

This report will include insights on cryptocurrency transactions, any technical difficulties faced, and suggestions for broadening the 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 renewed.

Unlike previous efforts like AB 953 in 2019 and SB 1275 in 2022, AB 1180 targets a narrower group of regulated payees. It focuses mainly on businesses engaged in cryptocurrency activities.

The bill reads, 

“This gives the state an opportunity to see if any concerns may arise with deploying this payment option.”

Not the first one!

Well, California is not the first state to move towards accepting cryptocurrency payments. It joins the ranks of Florida, Colorado, and Louisiana, which have already allowed crypto for certain obligations.

Currently, around 117 merchants in California accept Bitcoin [BTC] payments – A sign of growing adoption.

This is evidence of how the momentum for cryptocurrency use has gained national attention. Especially after former President Donald Trump expressed support for Bitcoin reserves. 

Several states, including New Hampshire, Arizona, and Texas, have passed legislation to establish state Bitcoin reserves. Others like Florida, South Dakota, and Wyoming have rejected similar bills.

Amid this growing enthusiasm, Coinbase founder Brian Armstrong has cautioned that increasing fiscal debt could position Bitcoin to become the world’s next reserve currency.