Residents of Colorado seeking to renew a driver’s license or vehicle registration online now have the option to make payments using crypto.
When renewing a motor vehicle service online, Coloradans can pay with digital currency through payment giant PayPal.
Colorado Introducing Crypto Payments for Convenience
The Colorado Division of Motor Vehicles (DMV) clarifies that crypto payers will be redirected to PayPal to execute the transaction. Coloradans can use this payment option to renew their driver’s license, identification card, vehicle registration and other motor vehicle services online.
However, using crypto for payments will incur fees. “There is a service fee of $1 plus 1.83% of the DMV total for paying in cryptocurrency. Paypal fees may apply as well,” the statement noted, explaining:
“A sufficient amount of cryptocurrency to cover the transaction and fees is then converted to dollars and remitted to the DMV to complete the online transaction.”
Meanwhile, Visa and Mastercard have fairly similar fee structures. BeInCrypto recently reported that Visa charges an interchange fee of 1.15% + $0.05 to 2.40% + $0.10. Meanwhile, Mastercard charges 1.15% + $0.05 to 2.50% + $0.10.
Push For Adoption In Recent Times
The DMV’s Senior Director Electra Bustle highlights convenience as a fundamental motive for providing crypto payments to its customers. “This new online cryptocurrency payment option is yet another way the DMV is providing innovative and convenient service delivery to our customers,” Bustle stated.
In recent times, PayPal has been actively pushing for crypto adoption. On August 7, PayPal announced the launch of its own stablecoin, PYUSD. The stablecoin will be backed by the US dollar, short-term treasuries, and similar cash equivalents.
PayPal will initially offer PYUSD to its US customers. They will be able to transfer the ERC-20 stablecoin to external wallets, conduct peer-to-peer transactions, and convert it into other cryptos supported by PayPal.
On May 9, PayPal revealed roughly $1 billion of crypto holdings in its Q2 2022 earnings report. According to the report, PayPal owns $499 million in Bitcoin (BTC), $362 million in Ethereum (ETH), as well as $82 million in Bitcoin Cash (BCH) and Litecoin (LTC). Its holdings grew by over 30% since Q4 2022.
Disclaimer
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Source: https://beincrypto.com/colorado-now-accepts-crypto-for-drivers-license-and-vehicle-registration-renewals/