California is about to convert state payments with cryptocurrencies into a reality

By Hannah Pérez

State payments with cryptocurrencies in California are ready to become a reality now that the assembly has approved the bill AB 1180. The legislation passes to the Senate before the governor’s signature.

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• California Assembly approves bill that allows state payments in cryptocurrencies.
• The AB 1180 bill now passes to the Senate before the governor’s signature.
• If it is officially approved, California will join the states that accept Bitcoin for payments.

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Payments with cryptocurrencies to state departments in California are close to becoming a reality.

California has taken another step towards the adoption of digital currencies after the legislators of that state approved a bill that allows state agencies to accept the asset class.

On Tuesday, the California State Assembly unanimously approved the bill AB 1180, which would open the door for the use of cryptocurrencies as an alternative payment mechanism for state obligations.

The members of the Assembly approved the legislation in a 68-0 vote in their third reading, which means that now the document is directed towards the Senate. If the upper house approves, only the governor’s signature will be missing to officially become law.

In particular, the bill AB 1180 It would authorize the Department of Financial Protection and Innovation (DFPI) to create a pilot program for the use of digital financial assets to pay state fees.

The DFPI is the California regulatory agency in charge of supervising financial services and protecting consumers while promoting responsible innovation, as details Cointelegraph. People and entities carrying out commercial cryptocurrency activities in the state must obtain a DFPI license.

California joins the states that move towards cryptocurrencies

During the session, the member of the Assembly, Avelino Valencia, who presented the bill, He emphasized The innovative approach of the proposal. “I feel proud to present AB 1180“He said, adding that the initiative marks a turning point for the adoption of financial technologies by the public sector.

The bill would require the DFPI to present a report before January 1, 2028, detailing all processed cryptocurrency transactions, in addition to the technical and regulatory challenges found, Valencia explained.

If promulgated by the governor of California, Gavin Newsom, the bill would enter into force on July 1, 2026.

This advance would place California in the list of other states of the United States, such as Florida, Colorado and Louisiana, which have also adopted payments with cryptocurrencies for certain state obligations.

The Californian measure is also part of a national tendency towards greater institutional adoption of cryptocurrencies as a result of the friendly approach of the Donald Trump administration. Numerous states have moved to legislate cryptocurrencies, with proposals to convert Bitcoin in a strategic reserve asset arising in dozens of states.

President Trump signed an executive order in March to establish a national strategic reserve of Bitcoin. In at least two states, projects online have been approved, while in others the proposal has been rejected or discarded.

In April, State of California took a firm step towards the protection of cryptocurrency users when the State Assembly approved with bipartisan support the bill AB 1052, which legally recognizes the use of cryptocurrencies and guarantees the right to self -ustody.

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Hannah Estefanía Pérez / Diariobitcoin

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