May 22, 2022

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Only The Finest Women

Colorado is Set to Accept Taxes in Cryptocurrency

Original: US State Wants to Lead in Crypto Acceptance — Colorado to Accept Crypto for Tax Payments This Summer

According to a bill that has passed both chambers, the State of Colorado is set to accept taxes in cryptocurrency and is awaiting the governor’s signature.

The bill was introduced by Rep. Jonathan Singer and Sen. Tim Neville. It states that “Colorado shall endeavor to become the first state to allow taxpayers to pay their taxes via cryptocurrency, such as Bitcoin.” It also specifies how this will be achieved:

“The department of revenue shall work with a third party, such as Bitpay, Inc., to convert cryptocurrency payments to United States dollars at the prevailing rate within twenty-four hours after the payment is received.”

If signed by Gov. Jared Polis, it would go into effect on July 1 this year.

While it’s not clear how many people will opt for crypto tax payments, the state may benefit from the publicity surrounding the move. It could also help bring blockchain technology closer to mainstream acceptance.

In any case, some experts doubt that this kind of legislation will impact actual tax revenues. Peter Van Valkenburgh, director of research for cryptocurrency policy think tank Coin Center, told Reuters:

“It probably doesn’t make a huge difference whether you can or cannot pay your taxes in bitcoin, but it’s an important symbolic.”

Any business or individual paying taxes to the state — be it sales and use, income, or excise tax — can do so in bitcoin (BTC) or Bitcoin Cash (BCH), BitPay said in a Tuesday announcement.

“We’re proud to welcome Colorado as the first state government in the U.S. to approve paying taxes with cryptocurrencies,” said Sonny Singh, chief commercial officer at BitPay. “It’s another milestone showing that bitcoin is becoming an accepted form of payment by more and more governments.”

BitPay said it serves more than 20,000 businesses worldwide and has processed over $1 billion in payments since 2011.

Last Words

The newly approved bill will help Colorado take advantage of the potential benefits of blockchain technology and digital currencies, including increased security, efficiency, and transparency. The bill will also ensure that Colorado remains at the forefront of financial technology, which is a growing industry for the state.

Author bio

Blair Thomas has been a music producer, bouncer, screenwriter and, for over a decade, has been the proud Co-Founder of eMerchantBroker, the highest-rated high-risk merchant account and crypto payments processor in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.