California Goes Crypto: State Assembly Greenlights Digital Asset Payments
California just took a chainsaw to traditional finance—lawmakers passed a landmark bill allowing state payments in crypto. Move over, greenbacks—digital assets are now legit tender in the Golden State.
The Breakdown
No more begging bureaucrats to 'understand blockchain.' The bill forces California to accept crypto for taxes, fees, and even that parking ticket you’ve been ignoring. Take that, legacy banking.
Why It Matters
States usually trail tech by a decade—this time, they’re (almost) keeping pace. The fine print? Agencies get 12 months to implement. Plenty of time for lobbyists to water it down.
The Punchline
Wall Street’s sweating. A government actually embracing innovation? Must be a glitch in the matrix—or maybe politicians finally realized their 'anti-crypto' stance was costing them votes (and donations).
California Takes Step Toward Crypto-Based State Payments
The bill, which cleared the Assembly with a decisive 68-0 vote, now advances to the California Senate for further review. Democratic assembly member Avelino Valencia, who spearheaded the initiative, presented AB 1180 on the Assembly floor. He described it as a “first-of-its-kind” pilot program.
“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,” Valencia said.
AB 1180 requires the Department of Financial Protection and Innovation (DFPI) to create regulations allowing state payments under the Digital Financial Assets Law (DFAL) to be made with cryptocurrency.
The bill mandates the DFPI to submit a report to the legislature by January 1, 2028. The report would contain data on cryptocurrency transactions, technical challenges encountered, and recommendations for expanding the use of digital assets in payments across other state agencies. Additionally, the bill is set to sunset on July 1, 2031.
Despite previous attempts to implement cryptocurrency payments, such as AB 953 (2019) and SB 1275 (2022), AB 1180 distinguishes itself by focusing on a smaller group of regulated payees, primarily businesses dealing in cryptocurrency.
“This gives the state an opportunity to see if any concerns may arise with deploying this payment option,” the bill reads.
Furthermore, the bill has received support from the California Blockchain Advocacy Coalition. If approved by the Senate and signed into law by Governor Gavin Newsom, AB 1180 could position California as a pioneer in integrating cryptocurrency into state financial systems, potentially setting a precedent for other states nationwide.
This follows efforts in other states, such as Florida, Colorado, Louisiana, and Utah, which already accept cryptocurrency payments.
Meanwhile, AB 1180’s progress comes amid growing institutional interest in cryptocurrency within California. BeInCrypto reported that the US state is the largest investor in Strategy’s (MicroStrategy) shares, a company renowned for its substantial Bitcoin holdings under the leadership of founder Michael Saylor.
The state’s public pension funds, including CalSTRS and CalPERS, have a $276 million stake in MSTR. This investment highlights California’s expanding involvement with digital assets and indicates a wider recognition of cryptocurrency as a legitimate financial tool.
