Colorado has become the U.S. state to accept cryptocurrency for tax payments. The state’s governor, Jared Polis first announced the move in late February and also said that it was one step in the move to digitize the economy.
Colorado has officially become the first U.S. state to accept cryptocurrency payments for taxes, according to media reports. The state’s Governor, Jared Polis, lauded the effort as “the next logical step on the path to digital statehood.”
Governor Polis first revealed the move in a recent tweet, saying that it would be getting a payment provider to help facilitate that process. He elaborated on the effort in an interview with CNBC, revealing that the option should be available in the next few months.
Polis appears very keen on digitizing Colorado’s economy. A former tech entrepreneur himself, he seems to be aiming to bring blockchain tech to various parts of the local economy. His press secretary Conor Cahill said that Polis was
“proud to lead efforts to create a strong and dynamic crypto ecosystem that puts Colorado at the forefront of digital innovation.”
It will be interesting to see how this new payment impacts the community and the tax payment process. Meanwhile, the IRS is also looking into how to tackle the problem of tax payments from incomes arising from the crypto asset class. It has appealed to the U.S. Congress to help deal with the issue.
Crypto use grows within bureaucracy
Crypto in bureaucracy seems to be growing slowly in the United States. Florida could be said to be at the forefront of this, with New York also a good contender. New York mayor Eric Adams said he would take his first three paychecks in crypto in a bid to attract fintech firms.
But Florida has done much more than that. Miami mayor Francis Suarez has announced multiple initiatives to attract the crypto industry, including launching the MiamiCoin. He has also taken his paycheck in bitcoin.
The increased use of crypto in the government is a good omen for the crypto market. The SEC and other regulatory bodies have yet to form full-scale regulation, but that is expected this year.
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Source: https://beincrypto.com/colorado-becomes-first-us-state-crypto-tax-payments/