The California Association passes a historic bill to integrate digital assets into state payments
The California Association voted unanimously to pass the Association’s Bill 1180 (AB 1180). It seeks to authorize the state to accept payments using digital assets.
The draft law aims to place California as a pioneer in creating digital assets. It also serves as a test to expand the coded currency payment systems.
California takes a step towards coding state payments
The draft law, which has cleared the association with a decisive vote 68-0, is now advancing to the California Senate for further review. Avelino Valencia, who led the initiative, AB 1180, presented in the assembly hall. He described it as a “unique” experimental program.
“I am proud to present AB 1180 that would create a experimental program that allows the Financial Protection and Innovation Department to allow the payment of fees using digital financial assets,” Valencia. He said.
AB 1180 from the Ministry of Financial Protection and Innovation requires the establishment of regulations that allow the provision of state payments under the DVA (DFAL) with the encrypted currency.
DFPI law is imposed to submit a report to the Legislative Authority by January 1, 2028. The report will contain data on encrypted currency transactions, the technical challenges it faced, and recommendations to expand the use of digital assets in payments through other state agencies. In addition, the bill was set on the sunset on July 1, 2031.
Despite the previous attempts to implement cryptocurrency payments, such as AB 953 (2019) and SB 1275 (2022), AB 1180 is distinguished by focusing on a smaller group of regulatory beneficiaries, especially companies that deal in the encrypted currency.
“This gives the state an opportunity to see if any fears may arise with the publication of this payment option,” invoice Read.
Moreover, the draft law received support from the California Blockchain Alliance for the invitation. If the Senate approved and signed by the law by Governor Gavin New Off, the AB 1180 can put California as a pioneer in integrating the cryptocurrency into government financial systems, and perhaps a precedent for other states at the country level.
This is followed by efforts in other states, such as Florida, Colorado, Louisiana and Utah, who already accepts encrypted currency payments.
At the same time, AB 1180 comes in the midst of an increasing institutional interest in the cryptocurrency inside California. Beincrypto mentioned that the American state is the largest investor in Strategy’s (Microstrategy) shares, a company famous for its great rights in Bitcoin under the leadership of the founder Michael Sailor.
The state’s general retirement funds, including CALSTRS and Calpers, have $ 276 million in MSTR. This investment highlights California’s expanding participation with digital assets and indicates a broader recognition of the encrypted currency as a legal financial tool.
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