D-Keine / iStock.com
Colorado proved to be at the forefront of cryptocurrency when Governor Jared Polis tweeted that his state would be the first to accept cryptocurrency for payment of state taxes and fees. He wrote, “We require a payment provider to accept the crypto equivalent and deposit the dollars into the state treasury for that amount. It’s a bit like credit card payments, with the bonus that there is no return payment!
See: Spot Bitcoin ETFs on the Horizon? Grayscale asks investors to speak out ahead of SEC ruling
Find: Bitcoin Rises as US Imposes Additional Sanctions on Russia
In an interview with CNBC, Polis said he expects the program to kick off this summer and that the program could pave the way for the state to accept crypto for other state fees, including driving and hunting license fees.
The governor’s press secretary, Conor Cahill, called the program a “logical next step on the road to the digital state”, in a statement to The Guardian. “Governor Polis is proud to lead efforts to create a strong and vibrant crypto ecosystem that puts Colorado at the forefront of digital innovation,” Cahill wrote.
Twitter users had mixed feelings about the announcement, with some decrying the move because using the energy-hungry crypto could accelerate climate change while others called the crypto a “pyramid scheme.” “.
Other users pointed to the volatility of the crypto market as a stumbling block, wondering if the extreme volatility will impact state revenue and taxpayer liability.
Learn: Aaron Rodgers, New York Mayor Eric Adams, and Other Big Names Earn Crypto Salaries
Explore: Bitcoin Payroll: The Future of Hiring? Crypto benefits plan could attract workers and improve employee retention
Although Colorado is the first state to accept crypto for government payments, Wyoming and Arizona are also spearheading efforts to bring crypto into the mainstream. Arizona has proposed recognizing bitcoin as legal tender, while Wyoming is seeking to allow crypto sales tax payments from merchants in the state, Politico reported.
More from GOBankingRates