The United States Already Allows Paying Taxes With Crypto

2 years ago · Updated 2 years ago

✍️ 21 September, 2022 - 17:42 👤 Editor: Jakub Motyka

The state of Colorado in the United States will begin accepting cryptocurrencies for tax payments.
The state government will use intermediaries to convert cryptocurrencies into dollars.

The measure could give a new impetus to crypto adoption within the United States.

GovernorJared Polis from Colorado announced this September 20 that they will start accepting cryptocurrencies as payment for taxes. In this way, all people and companies that own digital assets could make payments to the state treasury through an intermediary.

In his announcement, Polis stated that the decision has been raised from the perspective of customer service. They are doing their best to adapt to the changing needs of customers and residents of the state. Let us remember that Colorado is one of the main states in the United States in promoting the use of cryptocurrencies.

How Can Tax Payments Be Made In Crypto?

In an interview for CNBC in February of this year, Polis said that they hire a specialized company to process the transactions. He noted that “we are having a payment provider accept the crypto equivalent and deposit the dollars in the state treasury for the amount. It's something like credit card payments, with the advantage that there are no returned payments!”

People from Colorado will be able to pay income, severance, withholding, and fuel excise taxes using cryptos. It is expected that new mechanisms and entities will be added to the initiative in the future.

Colorado At The Forefront Of Cryptocurrencies In The United States

The long-term vision of Polis and the Colorado government is to drive crypto adoption within the state. For this, they have made a series of moves to create all the necessary infrastructure and legislation. They hope to implement payments in digital assets for the application of hunting, driving and fishing licenses, as well as the creation of a blockchain database to mark cattle.

Polis extensive experience as a technology entrepreneur, has allowed him to see the intrinsic value of digital assets. For this reason, he has done his best to offer an optimal environment for their adoption within the state from Colorado. In 2019, it enacted a law that exempts specific cryptos from the need to be registered as securities. This allowed brokers and sellers to operate more easily.

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