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February 17, 2022

Colorado To Start Accepting BTC Tax Payments By Summer

The race to be the first state in the United States to accept cryptocurrencies has begun. Colorado Governor Jared Polis recently announced that the state will begin accepting cryptocurrency as a form of payment for taxes. The governor also stated that the plan is to eventually extend cryptocurrency acceptance to all payments made in the state.

This was stated by Polis during an interview with CNBC. According to the governor, the state government will begin accepting cryptocurrency this summer, which is less than five months away.

Payments for driver’s and hunting licenses are among the other crypto payments that will be accepted in the state over time. The state aspires to be the center of cryptocurrency adoption in the US.

The Western United States’ governor has also stated that his crypto acceptance plan will not expose the state to the cryptocurrency market. This is because the government will convert all cryptocurrency payments to dollars without holding them for any period of time.

Polis explained that an intermediary will be used to convert the cryptos back to dollars for their purposes. Last month, the governor made a similar clarification while speaking at a National Governors Association meeting.

Aside from Colorado, two other US states may be on the verge of accepting cryptocurrencies. Wyoming legislators have proposed allowing residents to pay their taxes in cryptocurrency.

A close proposition would make Bitcoin legal tender in Arizona and allow it to be used to pay taxes. Other state legislators in the United States have expressed a desire to accept cryptocurrency, attract cryptocurrency investors, and serve as hubs for the rapidly expanding industry.

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Furthermore, the US government maintains its skepticism toward cryptocurrencies. Federal financial regulators in the Biden administration have continued to warn about the economic risks posed by digital assets. One such regulator is the SEC, whose chairman Gary Gensler continues to refer to the cryptocurrency industry as the “Wild West.”