Ohio becomes first state to accept bitcoin for taxes: will others follow?
Earlier this week, Ohio has officially become the first U.S. state to accept cryptocurrency for tax payments. Ohio State Treasurer Josh Mandel, who originally proposed the idea, hopes the initiative will put Ohio on the map as a leading innovator in the technology economy. According to Mandel, even though he’s soon to leave the office, his successor Representative Robert Sprague is in favor of further improving the service.
Through Bitpay business owners will soon be able to pay for 23 different business taxes with bitcoin. Given the volatility of markets, the bitcoin is immediately converted to U.S. dollars upon payment. Mandel eventually expects other cryptocurrencies to be accepted and the service expanded to include individual taxpayers.
Although Arizona and Georgia have toyed with the idea of using cryptocurrencies for tax payments, these bills, unfortunately, were never passed. Illinois is currently working on a similar bill, but only Ohio can claim to be the first state allowing bitcoin for business taxes. Given the success in Ohio, can we expect other states to pursue more cryptocurrency-based payment options?