The state of Ohio has been accepting tax payments in Bitcoin since this week. Through an online platform, companies can register for the service and then pay a variety of taxes with Bitcoin. San Francisco’s Bitpay will then convert the payments into US dollars.
The squirrel has a hard time feeding itself. This phrase also applies to the Bitcoin adoption, because the way from the asset class to the means of payment is far. Even so, the news of bitcoin acceptance for Ohio taxpaying in stormy crypto-times is good news.
But one after anonther. As the Wall Street Journal reports (Paywall Attention), Ohio citizens will soon be able to pay a variety of different taxes in Bitcoin. These include VAT, payroll tax and certain taxes on consumer goods such as gasoline and cigarettes.
So far, only companies can arrange for the payment of their taxes in Bitcoin. These must register via the website ohiocrypto.com. However, according to the report, the state plans to expand to taxable individuals in the medium term.
Crypto friend Mandel as an architect
The driving force behind the project was Ohio Treasurer Josh Mandel. The Republican is considered a strong proponent of cryptocurrencies:
“Bitcoin is a legitimate form of money for me”,
said the politician to the Wall Street Journal.
The agency identifies six reasons why companies should use the new offer, such as the speed of payment processing, low fees, blockchain tracking, better transparency, a high level of cash flow security and the ability to to initiate mobile payments.
Mandel said that the online service should be open from the beginning of this week:
“Starting this week, companies in Ohio can register on ohiocrypto.com and then pay different taxes with Bitcoin. At some point, the service will be extended to private individuals. ”
In cooperation with Bitpay
For the payment processing, the state, however, relies on the payment provider Bitpay. The San Francisco-based company will soon convert the paid bitcoin into dollars. This step is necessary because the US dollar is the only legal tender in the country.
Even though taxes are not recorded in the form of bitcoin, the move is a clear signal from the Ohio administration to be positive about cryptocurrency issues.
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Virtual currency is in many countries not legal tender, or is not backed by the government, and accounts and value balances are not subject to consumer protections. The information does not constitute investment advice or an offer to invest.
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