Taxes and crypto: Colorado will become the first state to accept digital currency for payments

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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!

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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.

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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.

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About the Author

Dawn Allcot is a full-time freelance writer and content marketer with interests in finance, e-commerce, technology, and real estate. His long list of publishing credits includes Bankrate, Lending Tree and Chase Bank. She is the founder and owner of GeekTravelGuide.net, a travel, technology and entertainment website. She lives in Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten and three lizards of different sizes and personalities – plus her two children and her husband. Find her on Twitter, @DawnAllcot.

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