Unlocking Crypto Transactions: California's Public Sector Embraces Digital Payments

California Poised to Embrace Cryptocurrency Payments

In a significant move, the California State Assembly has passed a unanimous 68-0 vote to allow state agencies to accept cryptocurrency payments. The bill, known as Assembly Bill 1180 (AB 1180), now heads to the Senate for further consideration.

The legislation will require the Department of Financial Protection and Innovation (DFPI) to develop rules enabling the state to accept fees and transactions using digital financial assets, including cryptocurrencies. This marks a crucial step in California's efforts to embrace the growing digital economy.

California authorities have been actively combating crypto-related fraud, having taken down 26 fraudulent crypto websites and uncovering over $4.6 million in consumer losses in 2024. The DFPI's "Crypto Scam Tracker" has identified seven new scam types, exposing fraudulent activities such as fake Bitcoin mining, crypto job scams, and crypto gaming frauds.

If signed into law by Governor Gavin Newsom, the bill could become effective as soon as July 1, 2026. However, the bill's sponsor, Democratic Assembly member Avelino Valencia, indicates the pilot program would run until January 1, 2031, before becoming fully operational.

This move aligns with California's broader efforts to embrace digital financial assets. The state has already passed AB 1052, also known as the "Bitcoin rights" bill, which aims to establish crypto self-custody rights for Californians.

The passage of AB 1180 would make California the latest state to accept cryptocurrency payments, joining Florida, Colorado, and Louisiana, which have already taken similar steps in recent years.

This development comes at a time when national attention on cryptocurrency has been heightened, following President Donald Trump's pledge to support Bitcoin reserves.