It is now possible to pay taxes in Bitcoin in the American state of Colorado. For the time being, those who want to pay their tax obligations through cryptocurrency must necessarily go through PayPal. Colorado thus becomes the first state in the United States of America to collect taxes in cryptocurrencies.
Paying your taxes in crypto is possible in Colorado
Speaking at Denver Startup Week, the governor of the US state of Colorado Jared Polis announced that his entity will now accept cryptocurrency for tax payments.
For now, businesses will have to wait a bit. The payment of taxes in cryptos is only available for individuals. The payment is made only through the PayPal Cryptocurrency Hub, which offers a service fee of $1.00 plus 1.83% of the payment amount.
We are once again showing how Colorado is on the cutting edge of technology to meet the ever-changing needs of businesses and residentsJared Polis, Governor of Colorado
Jared Polis is a big supporter of cryptos. As a member of the U.S. House of Representatives, he has been very active in the implementation of cryptocurrency legislation. Jared Polis is also a founding member of the Congressional Blockchain Caucus.
Will Colorado succeed where other states have failed?
While Colorado is the first U.S. state to accept cryptocurrency tax payments, other states have already tried similar initiatives to no avail. In 2018, Ohio was the first to attempt to institute tax payments in cryptocurrencies. But in October 2019, that initiative was abandoned due to legal complications.
States like Georgia, Illinois, and Arizona are also considering adopting tax payments through cryptocurrency.
Still, there is no shortage of success stories regarding the introduction of tax payments via cryptos. Since August 24, 2022, residents of the Argentine province of Mendoza began paying their taxes in cryptocurrency upon the decision of local tax authorities. This process has proven to be faster for taxpayers and, above all, transparent in a context where cases of tax fraud plague the country.
Colorado provides one more example that cryptocurrencies are not necessarily an enemy of the state, contrary to the hostile rhetoric in vogue in some countries. On the contrary, crypto, used in the right context, can become a powerful ally of public services in the mission to faithfully fulfill their responsibilities.
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.