Ohio has taken a leap to become the first state in the United States to officially accept tax payments in Bitcoin.
According to verified reports, beginning today (November 26), businesses can now pay for taxes in Bitcoin by visiting the state’s crypto website – www.OhioCrypto.com; where they are required to subsequently register to pay their taxes to the government in BTC.
The Ohio state government has made crypto payment processor BitPay its official partner to handle all crypto tax payments and conversions to dollars for the tax office. The new initiative will cover 23 tax variants including utility taxes, sales tax, and employee withholdings.
Ohio state treasurer, Josh Mandel who is credited to have championed the initiative is said to have expressed interest in Bitcoin as a legitimate form of currency since his appointment in 2011.
Speaking on the advantages of crypto tax payments, Mandel opines that accepting cryptocurrency is a great way to brand the state as well as provide enabling grounds for further progressive technological ideas. He further said that the state was making moves around the blockchain industry in a bid to become a national leader in this regard.
Excerpts from the state’s website also highlight the advantages of the crypto for tax option; as it reads:
Cryptocurrencies cannot be transferred to third parties without user initiation, thereby practically eliminating fraud; anyone can view all transactions on the blockchain network; payments on the blockchain can be tracked on a second-by-second basis; a minimal fee is charged to confirm transactions on the blockcahin network.
The above assertion highlighting bitcoin as a Secure,Transparent and Cheaper payment option.
The website also indicates that payment would not be limited to Bitcoin only; as more cryptocurrency options will be added in due course.
A New Trend
Before now, most use cases of BTC had been solely for peer-to-peer payments and speculative uses in trading; as Bitcoin’s price volatility had many merchants and businesses reluctant to accept it for payment of goods and services – an edge which the BitPay company would offer the state irrespective of volatility concerns.
Also, even as Bitcoin and altcoin prices see red, adoption and more positive news have continued to trail the industry in recent weeks. Ohio’s latest move is a sure win for the cryptocurrency and blockchain industry with a plus of government approval which enthusiasts believe would trigger more institutional activity.
Enthusiasts emphasize that Bitcoin could be used by anybody and for all currency transacts .
This is not the first time Ohio has been in the news for crypto payments; earlier this month the Ohio Museum (Great Lakes Science Center) announced its decision to accept payments for visitors admission tickets in Bitcoin. A move its CEO described as a small quota to the development momentum of the blockchain industry considering the excitement and potential around the industry.
In all, this move could surely trigger more use cases for Bitcoin and other cryptocurrencies in the U.S and globally.
NOTE: The U.S states of Arizona, Georgia and Illinois, have all considered crypto for tax payments before now. However the bills were met with some resistance at the legislative level.