California, USA, is preparing to enter the era of government payments in full with Bitcoin (BTC) and cryptocurrency. This considers state departments accept digital assets payments after the state legislature makes a decisive push to Bill 1180 (AB 1180).
The legislative initiative received overwhelming support of 68 votes on Monday, and was in favor and against anything during its third reading in the House. With this The document has now been handed over to the state Senate for consideration..
Its purpose is to modernize accepted payment methods in California, including digital assets for payment of state fees and other regulated transactions.
It means that Fines, licenses, taxes, state services, or other managers can pay with Bitcoinand rules and procedures have been established, and procedures using digital assets are safe, transparent and adhere to state financial standards.
If the project achieves California Senate approval and receives a signature from Governor Gavin Newsom, The law will come into effect on July 1, 2026. This will place California in states such as Florida, Colorado, and Louisiana. This already allows Bitcoin and cryptocurrency payments for certain government obligations.
The proposal presented by Democratic lawmaker Abelino Valencia defines digital assets: Make it clear that we do not establish them as a digital representation of values used as a means of exchanges, accounts or reservation units, and that we do not establish them as corporations.
If the law is approved, California’s Department of Financial Protection and Innovation (DFPI) will be responsible for developing certain regulations. Within these rules, including requirements such as validation of fund sources, immediate conversion to dollars for the state, or use of permitted platforms to process payments.
Another step towards adopting Bitcoin
The AB 1180 project is designed to complement other important initiatives, such as the AB 1052 standard, known as the California initiative for the defense of “Bitcoin Rights.” The project unanimously moved forward at the first committee on May 23rd (11-0), and is looking forward to a third reading, but focuses on. Establish rights for Bitcoin and cryptocurrency autocustody For almost 40 million residents of California.
With proposals focused on protecting citizens’ rights to own Bitcoin, its use and the use of other digital financial assets is known as a valid and legal form of payment in private transactions. Also, Prohibits public institutions from restricting or taxingDigital assets are used only as a payment method.
Governor Gavin Newsom’s pro-bitcoin status gives us a glimpse into the favorable panorama for legislative proposals to promote the use of Bitcoin and cryptocurrency in California. As Cryptonotics previously reported, the ruler had strong support for actors in the crypto industry during his campaign.
Additionally, the state legislature of Bill 1180 has unanimous support, aimed at integrating Bitcoin and other digital assets into daily life.
Since 2023, California has made extensive efforts to regulate the use of digital assets, and that year was approved for the AB 39 initiative to establish a general regulatory framework for activities related to Bitcoin and cryptocurrency. And now, AB 1180 is focused specifically on allowing state fees and other regulated transactions to be paid on digital assets.
