California State Assembly Passes Bitcoin Government Payment Bill with Full Vote
On June 3, the California Assembly passed AB 1180 with an overwhelming vote of 78 to 0, allowing state government agencies to accept digital asset payments such as Bitcoin for regulatory fees.
This bill, introduced by Democratic Assemblymember Valencia, has now been submitted to the Senate for consideration. If ultimately passed, California will become the fourth state in the U.S. to accept cryptocurrency payments, following Colorado, Utah, and Louisiana.
According to the bill's design, California's cryptocurrency payment program will be implemented as a five-year pilot (2026 to 2031), overseen by the Department of Financial Protection and Innovation (DFPI), which will be responsible for establishing the payment system.
The core of the program is to balance innovation with risk, mitigating volatility through immediate cryptocurrency-to-dollar conversions, and plans to complete cost and risk assessments by 2028 to analyze operational costs and potential risks.
At the same time, payment processors like BitPay will be allowed to participate in the bidding process, and the program will imitate Colorado's model by charging a service fee of “$1 plus 1.83%” per transaction.
It is noteworthy that, as the headquarters of blockchain giants like Ripple and Solana Labs, California's move is seen as policy support for local businesses, with Senator Valencia stating it will serve as a blueprint for statewide digital asset integration.
Meanwhile, Valencia is pushing AB 1052, the “Bitcoin Rights Bill,” which aims to incorporate protections for self-custody, node operation, and peer-to-peer transactions into state law, and has received backing from the Satoshi Action Fund.
However, despite the numerous positive developments, controversies remain. Consumer protection organizations and financial regulators continue to express concerns about the energy consumption and volatility of cryptocurrencies. Some legislators have hinted that additional safeguards such as fee caps and refund mechanisms may be added during the Senate review to address these potential risks.
In summary, every step taken by California is fraught with challenges, as it strives to maintain its status as an innovation hub while also guarding against financial risks.
If the bill is enacted, California, accounting for 14% of the U.S. GDP, is poised to become a key force in advancing the public application of cryptocurrencies. As the proposer Valencia stated, “California should not just be a follower.”
