- California Advanced AB 1180 to enable crypto payments for state costs and transactions
- Growing state aid for Bitcoin reserves is a sign of rising acceptance in the midst of regulatory debates
The California State Assembly has unanimously approved a pioneering account This would enable government agencies to accept cryptocurrency payments.
California goes to AB 1180
Based with a 68-0 mood, Assembly Bill 1180 (AB 1180) will now move to the Senate for further consideration.
Put by member of the Democratic meeting Avelencia, the bill wants to set up a groundbreaking pilot program to enable the use of digital currencies for state costs and transactions.
It also mandatory the Department of Financial Protection and Innovation (DFPI) to develop legal guidelines under the Digital Financial Assets Law (DFAL) to facilitate this new payment method.
Note about the same, Valencia said”
“I am proud to present AB 1180 that would prepare a pilot program that allows the Ministry of Financial Protection and Innovation to make payment of reimbursements possible with the help of digital financial assets.”
How will it change the way California thinks of Crypto?
According to the provisions of the bill, the DFPI must submit an extensive report to the legislative power by 1 January 2028 at the latest.
This report will include insights into cryptocurrency transactions, any technical problems and suggestions for broadening the acceptance of digital activetism at extra government agencies.
The bill also contains a Sunset clause, which means that it will automatically run on July 1, 2031, unless renewed.
In contrast to earlier efforts such as AB 953 in 2019 and SB 1275 in 2022, AB 1180 focuses on a narrower group of regulated beneficiaries. It focuses primarily on companies that deal with cryptocurrency activities.
The bill reads,
“This gives the state the opportunity to see if there can be worries when deploying this payment option.”
Not the first!
Well, California is not the first state to switch to accepting cryptocurrency payments. It agrees with the ranks of Florida, Colorado and Louisiana, who have already allowed Crypto for certain obligations.
Currently, around 117 sellers in California accept Bitcoin [BTC] Payments – A sign of growing adoption.
This is proof of how the momentum for the use of cryptocurrency has received national attention. Especially after former President Donald Trump had expressed support for Bitcoin reserves.
Various states, including New Hampshire, Arizona and Texas, have adopted legislation to draw up Bitcoin reserves. Others such as Florida, South Dakota and Wyoming have rejected similar bills.
In the midst of this growing enthusiasm, Coinbase founder Brian Armstrong has warned that the increasing tax debt could position Bitcoin to become the next reserve currency in the world.