Colorado will become the first state in the United States to accept cryptocurrencies for the payment of state taxes and fees. State residents will be able to pay their income taxes in Bitcoin and Ethereum as early as June. Governor Jared Polis made the announcement a few days ago. To minimize the volatility challenges associated with cryptocurrencies, the state will accept payments in digital assets and then convert them into equivalent dollar amounts in real time before depositing them into the state treasury. “It’s kind of like credit card payments, with the bonus that there is no payment return,” the governor tweeted.
We require a payment provider to accept the crypto equivalent and deposit the dollars into the state treasury for that amount. It’s a bit like credit card payments, with the bonus that there is no return payment! pic.twitter.com/H8MaFV1ojE
— Governor Jared Polis (@GovofCO) February 23, 2022
In another Instagram post, Governor Jared Polis said that for years authorities have been creating the infrastructure in Colorado to make the state a center for cryptocurrency and blockchain innovation. “We see it as an essential part of Colorado’s overall innovation ecosystem,” he said and added that starting “this summer,” Colorado will accept cryptocurrencies for tax payment. and state fees.
“We require a payment provider to accept the crypto equivalent and deposit the dollars into the state treasury for that amount,” he said.
This isn’t Gov. Jared Polis’ first foray into cryptocurrency, according to ABC News. During his 2014 run for United States Congress, he accepted Bitcoin for campaign donations.
Governor Jared Polis also explained his vision for cryptocurrency acceptance in Colorado, from tax payments to a future state token, in an interview for CNBC Crypto Worlda few weeks ago.
In 2019, Governor Jared Polis signed the Colorado Digital Token Act, which exempted cryptocurrencies for “primarily consumer purposes” from several securities regulations.
In 2018, Ohio attempted a similar move by allowing businesses to pay a variety of taxes with cryptocurrency, but, according to Forbesit was dropped a year later following allegations that it had not been properly examined.
Despite regulations, many US states are taking an experimental approach approach to the cryptocurrency industry. Wyoming has introduced legislation to attract cryptocurrency miners. The state of Texas has offered cryptocurrency miners a 10-year tax holiday, sales tax credits, and state-sponsored worker training to attract more. Last year, Miami launched the “MiamiCoin”, a city-coin. New York Mayor Eric Adams also wants to make the city the center of the cryptocurrency industry.
Outside the United States, El Salvador has recently embarked on a similar path. The country’s Legislative Assembly passed a law making Bitcoin legal tender in June 2021, allowing the cryptocurrency to be used for everyday transactions.