State departments will accept payments in bitcoin in the western state of the U.S., with a proposal that has unanimous support.
The state of California, in the United States, is making preparations to fully enter the era of government payments using Bitcoin (BTC) and cryptocurrencies. This comes after the State Assembly gave a decisive push to Bill 1180 (AB 1180), which stipulates that state departments accept payments in digital assets.The legislative initiative received overwhelming support on Monday with 68 votes in favor and none against during its third reading in the lower chamber. Consequently, the document has now moved to the state Senate for consideration.
The objective is to modernize the payment methods accepted by the state of California, including digital assets for the payment of state fees and other regulated transactions. This means that fines, licenses, taxes, state services, or other administrative charges could be paid with bitcoin, and rules and procedures will be established to ensure that transactions involving digital assets are secure, transparent, and comply with the state’s financial standards. If the project receives approval from the California Senate and is signed by Governor Gavin Newsom, the law would come into effect on July 1, 2026. This would place California alongside states such as Florida, Colorado, and Louisiana, which already allow payments with bitcoin and cryptocurrencies for certain government obligations.
The proposal presented by Democratic Assemblyman Avelino Valencia defines digital assets as: any digital representation of value used as a medium of exchange, unit of account, or store of value, and clarifies that they are not established as legal tender.