California is joining the growing group of U.S. states experimenting with cryptocurrency for official payments. The State Assembly has overwhelmingly approved Bill AB 1180 with a 68-0 vote. If it passes the Senate, it could allow certain state fees to be paid in digital currencies.

💡 What’s in the Proposal?

The bill, introduced by Democratic lawmaker Avelino Valencia, aims to launch a pilot program enabling selected state agencies to accept crypto payments. Oversight will be provided by the Department of Financial Protection and Innovation (DFPI), which is also tasked with creating new regulatory guidelines under the Digital Financial Assets Law (DFAL).

The goal is to assess the benefits and challenges of using crypto in state payments – from technical functionality to legal compliance.

Valencia stated:

"I’m proud to introduce Bill AB 1180, which brings California closer to a financial future."

🧾 What Happens Next?

If the bill clears the Senate, DFPI will have until January 1, 2028, to deliver a comprehensive report on the program – including transaction data, technical hurdles, and suggestions for broader implementation. The law includes a sunset clause, meaning it will automatically expire in 2031 unless extended.

Unlike earlier failed efforts (such as AB 953 in 2019), this bill is more focused. It specifically targets businesses involved in digital assets, which could improve its chances of success.

🏛 Crypto in Government: The New Normal?

California is not alone. Florida, Colorado, and Louisiana have already rolled out similar crypto initiatives. While most are still in early or limited stages, the trend is clear: cryptocurrencies are steadily entering the public sector.

Currently, around 117 businesses in California accept Bitcoin, and that number continues to grow. The public debate is also heating up, with figures like Donald Trump publicly endorsing state-level Bitcoin reserves.

Meanwhile, states like New Hampshire, Arizona, and Texas have already passed legislation to establish Bitcoin reserves. Others, such as Florida, South Dakota, and Wyoming, have rejected such proposals.

💬 Interesting Times Ahead

With the U.S. national debt ballooning, Coinbase CEO Brian Armstrong recently warned that Bitcoin could become the next global reserve currency – especially if the U.S. continues to erode trust in the dollar.


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