Colorado Will Allow Bitcoin Payments for Taxation Purposes
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While the whole community is buzzing about the ongoing drafting of different measures against some cryptocurrencies by the US Government, we also have a couple of good news stories that paint a slightly more optimistic picture for the industry. The recent announcement by the state government of Colorado is an indicator that some states are interested in adopting Bitcoin. Colorado will be accepting tax payments in BTC.
The mechanic is clunky, but it works
When Gov. Jared Polis addressed his constituents to inform them that the government is allowing paying in Bitcoin, many were initially quite happy about the news. However, it turned out that some caveats may create inconveniences and reduce the utility of this decision to the bare minimum. Citizens living in Colorado can use cryptocurrency payments to pay a variety of taxes including individual and business income, sales, withholding, severance, and fuel.
One of the issues that immediately cooled down the hype is that payments can be done only using a PayPal account. This online financial service recently announced that they allow users to transfer BTC, ETH, BUSD, and LTC to each other. Now, you can also send it to the state’s treasury to pay taxes which seems to be nice but isn’t too convenient for actual holders of coins. If you need to utilize your PayPal account, what difference does the decision make?
The Governor also revealed that all transactions will be subjected to $1 plus 1.83% fees. It seems that the state government wants to win the race to crypto adoption even if the mechanic comes off as clunky and inconvenient.
Should BTC be used as the main crypto by states?
The market has been quite volatile lately, but the trend is apparent. Many cryptocurrencies are losing value during the “winter”. Nevertheless, Bitcoin is performing very well amidst the chaos that overtook the market. When Ethereum started losing the cash inflow battle against Bitcoin, many experts immediately started talking about how BTC has better legs and will come out on top. States betting on BTC is a good decision.
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