Ohio is the first U.S. state to accept Bitcoin for tax payments
Ohio – the first U.S. state to officially adopt cryptocurrency – will kick off its offering by allowing businesses to pay taxes using bitcoin. In the nearest future the offering is reportedly to be extended to individual taxpayers as well. However, the timeframe regarding this hasn’t been released as of yet. In the meantime, businesses registered in Ohio will use BitPay – a global cryptocurrency payment system – in order to process their tax payments.
The leading catalyst for Ohio’s adoption of cryptocurrency is State Treasurer Josh Mandel, who strongly supports the acceptance of crypto. He reportedly told in the past that his office would be able to decide on acceptance of the digital currency “without approval from the governor.” Moreover, Mandel hopes Ohio’s embrace of digital currency will rebrand the state’s reputation when it comes to technology and ultimately attract more crypto-related businesses here.
Following USA’s typical practice, laws vary greatly from state to state, and cryptocurrency is not an exception in this matter. For instance, at the same time as Ohio officially accepted it as a form of tax payment, states like Arizona and Georgia continue to face great difficulties in even passing bills favoring crypto, having them hindered or denied by amendments.
It will be interesting to see whether other states would jump on Ohio’s bandwagon and allow the use of crypto for the official government business. As with any innovation, sometimes it just takes one government body to adopt it in order for it to become mainstream.