The government of Louisiana has taken its first-ever crypto payment after the state’s Treasurer announced residents would have the option to pay for state services with certain crypto.

Louisianians now have the option to use any crypto wallet to pay using Bitcoin ( BTC ), the Bitcoin Lightning Network, and the US dollar-pegged stablecoin USD Coin ( USDC ), Louisiana State Treasurer John Fleming said in a Sept. 17 statement. 

The state’s first crypto payment has already gone through — for a fine going to the Louisiana Department of Wildlife and Fisheries through Bitcoin’s Lightning Network.

Louisiana takes first crypto payment over Bitcoin Lightning image 0

Source: John Fleming

Fleming said Louisiana’s acceptance of crypto payments results from a collaboration between the state, Bead Pay, and integration partners based in the state, which he says would result in a “decrease in the number of fraudulent transactions.”

“In today’s digital age, government systems must evolve and embrace new technologies,” he said. 

“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 was quick to note that the money received by the government will still be in fiat, as the service converts the crypto payments into US dollars, adding it “protects the state from previous worries about accepting cryptocurrency.”

Related: North Carolina resists the CBDC tide with new payments ban

Republican State Representative Mark Wright — who spearheaded the effort for the state to accept crypto — said he was “excited to see Louisiana further expanding its payment options,”

In May 2022, Wright set up a digital assets working group, which found early last year that crypto would be an acceptable form of payment.

Wright also led a 2021 Louisiana House resolution that commended anonymous Bitcoin inventor Satoshi Nakamoto for their “contribution to economic security.”

In June, Louisiana amended legislation to ban central bank digital currencies (CBDCs) and set rules for crypto miners and node operators. 

The law bans the state from taking part in tests for, accepting, or requiring payments that use a CBDC, but did not ban other digital currency payments.

Big Questions: How can Bitcoin payments stage a comeback?