Colorado to Start Accepting Cryptocurrency as Pay for State Tax Payments

Key takeaways:

• The state of Colorado in the US is taking great strides towards introducing crypto use cases for people living in or around the city. 
• The current governor, Jared Polis, proposes that by this summer, he expects to facilitate tax-related transactions in virtual currency. 
• The senator of Colorado is working on a bill that would allow state-developed digital tokens to be used for reserve purposes.

The state of Colorado in the US is taking great strides towards introducing crypto use cases for people living in or around the city. The current governor, Jared Polis, proposes that by this summer, he expects to facilitate tax-related transactions in virtual currency. The collected cryptocurrency will be converted into fiat currency—US dollars—on their end via a third-party intermediary. It hasn’t been disclosed as of yet who exactly this third-party intermediary is that citizens can expect to help process taxes with cryptocurrencies — hopefully, more information will come out soon though!

Governor Jared Polis recently announced that Colorado plans to accept crypto for tax-related purposes. “We expect by this summer — pretty soon — to accept crypto for all of our state tax-related purposes,” the executive said on CNBC’s Squawk Box. “Then we plan to roll that out across all of state government for things like hunting and fishing licenses or driver’s licenses within a few months after that.”

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Intending to attract and support skillful investment in both the token exchange market and the startup community, Polis is planning to enable tax payments in cryptocurrencies. After taking office in 2019, Polis signed a bill that declares cryptocurrency tokens “primarily consumptive” will not be regulated as securities. This decision was made because it would help to ensure that cryptocurrencies were seen as valuable assets, causing the state government of Colorado to create an opportunity for innovative startups to grow within local borders, driving economic growth in the region.

The senator of Colorado is working on a bill that would allow state-developed digital tokens to be used for reserve purposes. Many parts of the US are taking a step toward accepting money invested into cryptocurrencies despite the uncertain regulatory laws.

The US state of Wyoming is taking action to attract blockchain miners

US’s Texas state offers a 10-year tax abatement, sales tax credits, and state-sponsored workforce training to crypto miners. This incentivizes more crypto miners to set up shop in Texas, according to a report by Data Center Dynamics. The city of Miami built a cryptocurrency back in 2017 called the “MiamiCoin” and its mayor today, Eric Adams, has announced plans to foster the metro area as the center of the cryptocurrency industry.

ALSO READ: Algorand used by Vesta Equity to launch real-estate backed NFT platform

Conclusion

The White House may soon introduce new policies for the crypto sector as part of President Joe Biden’s national security memorandum. The details of which are still being discussed and have not been released at this time.

The crypto space is getting its microscope ready: the U.S. government will be assigned the role of examining and studying virtual currency and its main elements, which will include stablecoins and non-fungible tokens (NFTs), news publication Barron’s announced, according to an anonymous White House source.