The authorities of Colorado announced that state citizens can now pay their taxes in cryptocurrencies rather than using fiat. Among the supported digital assets are the 2 biggest by market capitalization i.e. Bitcoin (BTC) & Ether (ETH).
Yet, Colorado’s Revenue Department is not allowed to accept direct crypto payments, which is why it partnered with PayPal, which will help with the transactions.
Colorado’s Move in Crypto
The State’s officials revealed that Colorado residents are now able to utilize cryptocurrencies as a means of payment for individual income tax, business income tax, sales and use tax, severance tax, excise fuel tax, and withholding tax. Apart from Bitcoin and Ether, people can operate Bitcoin Cash and Litecoin.
Daniel Carr a spokesperson for the state official expressed Cryptocurrency has been modified as an additional payment option for taxpayers who are willing to complete their online transactions to pay for their state taxes on Revenue Online.
The Revenue Department can not bear direct digital asset settlements, so it united with the multinational fintech company PayPal. It will function as a broker for each transaction and alter cryptocurrencies into US dollars, this means that the consumers will have to pay specific fees for that service.
The move turned Colorado into the 1st American state where individuals could exploit digital assets for tax payments. Utah is the only other state where such steps are in movement, and it is anticipated to become live at the start of 2023.
You may find this useful: IMF: Crypto needs a global Regulatory Framework…
However, it is not the only state where the cryptocurrency sector flourishes. In Florida, for instance, Miami’s Mayor Francis Suarez attempted to attract BTC miners by providing them with affordable nuclear electricity. The political leader, a keen supporter of the primary digital asset, has also argued that Miami should pivot into a crypto hub, while BTC must be integrated into every aspect of society.
Eric Adams, New York City’s Mayor is also fond of the digital asset industry. He promised to receive his first 3 paychecks in bitcoin, while later, he opined that blockchain technology and its merits should evolve as a subject in schools.
Lastly, at the beginning of 2022, state Senator Wendy Rogers of Arizona presented a bill that could turn BTC into a legal tender in the area. If supported, the Grand Canyon state will become the first region where BTC is an official payment method.
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