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Colorado To Accept Cryptocurrency As Tax Payment, Will Become First US State To Do So

With the implementation of cryptocurrency payment acceptance for state tax and fee payments, Colorado will become the first state in the United States to do so. Residents of the state will be able to pay their income taxes in Bitcoin and Ethereum as early as June, according to the state's website. Governor Jared Polis made the news only a few days ago, according to the Denver Post. In order to reduce the issues connected with the volatility of cryptocurrencies, the state would receive payments in digital assets and then convert them into comparable dollar quantities in real-time before putting the funds into the state's treasury, according to the announcement. "It's similar to credit card payments, with the added benefit of not having to deal with returned money," the governor said on Twitter. Similarly, in another Instagram post, Governor Jared Polis noted that the state's authorities have been putting in place the infrastructure necessary to turn Colorado into a hub of cryptocurrency and blockchain innovation for many years. "We consider it to be a crucial component of Colorado's entire innovation environment," he said, adding that the state would begin accepting cryptocurrencies for state tax and fee payments "this summer" as part of its broader innovation ecosystem. According to him, "we're working with a payment provider to take crypto equivalents and deposit the dollars into the state's treasury in exchange for that amount." According to ABC News, this isn't the first time that Governor Jared Polis has dabbled in the bitcoin market. During his 2014 campaign for the United States Congress, he accepted Bitcoin payments for his campaign. Colorado Governor Jared Polis recently shared his vision for cryptocurrency adoption in the state, ranging from tax payments to the creation of a state token. The governor spoke with CNBC Crypto World about his idea. The Colorado Digital Token Act, signed by Governor Jared Polis in 2019, exempted cryptocurrencies having a "primarily consumptive purpose" from a number of federal securities restrictions. In 2018, Ohio made a similar step by allowing companies to pay a variety of taxes using cryptocurrencies. However, according to Forbes, the movie was withdrawn a year later when it was claimed that it had not been thoroughly examined before being implemented. In 2018, Ohio made a similar step by allowing companies to pay a variety of taxes using cryptocurrencies. However, according to Forbes, the move was withdrawn a year later when it was claimed that it had not been thoroughly examined before being implemented. Numerous states in the United States are pursuing an experimental approach to the cryptocurrency industry, notwithstanding existing rules. Wyoming has presented legislation to entice bitcoin miners to the state's economy. In an effort to attract more bitcoin miners, the state of Texas has provided a 10-year tax exemption, sales tax credits, and state-sponsored worker training in order to attract more of them. Miami developed the 'MiamiCoin', a city-coin, last year, which has since gained widespread acceptance. Additionally, Mayor Eric Adams of New York City wants to see his city become a global hub for the Bitcoin business. El Salvador, which is located outside of the United States, has lately taken a similar course. In June 2021, the nation's Legislative Assembly enacted a bill declaring Bitcoin to be legal money, enabling it to be utilized for day-to-day business transactions in the country.

With the implementation of cryptocurrency payment acceptance for state tax and fee payments, Colorado will become the first state in the United States. Residents of the state will be able to pay their income taxes in Bitcoin and Ethereum as early as June, according to the state’s website. According to the Denver Post, Governor Jared Polis made the news only a few days ago. According to the announcement, to reduce the issues connected with the volatility of cryptocurrencies, the state would receive payments in digital assets and then convert them into comparable dollar quantities in real-time before putting the funds into the state’s treasury. “It’s similar to credit card payments, with the added benefit of not having to deal with returned money,” the governor said on Twitter.

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Similarly, in another Instagram post, Governor Jared Polis noted that the state’s authorities had put the infrastructure necessary to turn Colorado into a cryptocurrency and blockchain innovation hub for many years. “We consider it to be a crucial component of Colorado’s entire innovation environment,” he said, adding that the state would begin accepting cryptocurrencies for state tax and fee payments “this summer” as part of its broader innovation ecosystem.

According to him, “we’re working with a payment provider to take crypto equivalents and deposit the dollars into the state’s treasury in exchange for that amount.”

According to ABC News, this isn’t the first time Governor Jared Polis has dabbled in the bitcoin market. During his 2014 campaign for the United States Congress, he accepted Bitcoin payments. Colorado Governor Jared Polis recently shared his vision for cryptocurrency adoption in the state, ranging from tax payments to creating a state token. The governor spoke with CNBC Crypto World about his idea.

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The Colorado Digital Token Act, signed by Governor Jared Polis in 2019, exempted cryptocurrencies having a “primarily consumptive purpose” from several federal securities restrictions.
In 2018, Ohio made a similar step by allowing companies to pay various taxes using cryptocurrencies. However, according to Forbes, the movie was withdrawn a year later when it was claimed to have not been thoroughly examined before being implemented.

In 2018, Ohio made a similar step by allowing companies to pay various taxes using cryptocurrencies. However, according to Forbes, the movie was withdrawn a year later when it was claimed to have not been thoroughly examined before being implemented.

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Numerous states in the United States are pursuing an experimental approach to the cryptocurrency industry, notwithstanding existing rules. Wyoming has presented legislation to entice bitcoin miners to the state’s economy. To attract more bitcoin miners, the state of Texas has provided a 10-year tax exemption, sales tax credits, and state-sponsored worker training to attract more of them. Last year, Miami developed the ‘MiamiCoin,’ a city-coin,’ which has since gained widespread acceptance. Additionally, Mayor Eric Adams of New York City wants to see his city become a global hub for Bitcoin.
El Salvador, located outside of the United States, has lately taken a similar course. In June 2021, the nation’s Legislative Assembly enacted a bill declaring Bitcoin to be legal money, enabling it to be utilized for day-to-day business transactions.

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