Colorado authorities announced that residents of the state can now pay their taxes using cryptocurrencies rather than fiat. The two largest digital assets supported by the state are Bitcoin (BTC), and Ether (ETH).
However, the Revenue Department of Colorado is not permitted to accept crypto payments directly. This is why they partnered with PayPal.
Colorado’s Pioneering Move
Officials from Colorado announced that residents can now use cryptocurrency as a way to pay for individual income tax, business income tax, or sales and use tax. Individuals can also use Bitcoin Cash or Litecoin in addition to Ether and Bitcoin.
Spopokesman Daniel Carr stated that Cryptocurrency was modified to provide an additional payment option to taxpayers who are able to make online transactions to pay their state taxes on Revenue Online.
Direct digital asset settlements are not accepted by the Revenue Department, so it teamed up with PayPal, a multinational fintech company. It will be a broker and convert cryptocurrencies to US dollars. Consumers will need to pay fees.
This made Colorado the first American state to allow individuals to use digital assets for tax payments. Utah is the other state that has such steps in motion. It is expected to go live in 2023.
Similar intentions were also made by Ohio in 2018. The authorities pulled their plans after Attorney General Dave Yost claimed it wouldn’t benefit the local financial sector.
Crypto Initiatives in Other US States
The cryptocurrency sector isn’t just thriving in Colorado. Florida’s Mayor Francis Suarez, for instance, tried to attract Bitcoin miners by offering them cheap nuclear power.
A strong advocate of the primary digital asset, the political leader also suggested that Miami be made a crypto hub and that BTC should be integrated into all aspects of society.
Eric Adams, New York City’s mayor, is also a fan of the digital asset sector. He pledged to get his three first paychecks in bitcoin. Later, he stated that blockchain technology and its merits should be taught in schools.
Last, but not least, Arizona state senator Wendy Rogers introduced a bill at the start of 2022 that would make bitcoin a legal tender. If the bill is approved, Grand Canyon will be the first state to accept bitcoin as a payment method.
CryptoPotato’s first report, Colorado Accepts Taxes in Bitcoin and Ethereum: Colorado is the First US State to Accept BTC and ETH Taxes appeared first on CryptoPotato.
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