World's First, Colorado Accepts Cryptocurrency Tax Payments

Colorado accepts tax payments with crypto (Photo; Jeremy Bezanger - Unsplash)

JAKARTA – For the first time in history, the US state of Colorado is accepting payments in cryptocurrencies. This was stated by Colorado Governor, Jared Schutz Polis, in an interview with CNBC.

Reporting from TheDailyHodl, the Governor of Policy said that citizens of the Centennial State will be able to use digital assets to pay state taxes around mid-2022.

The police also said the state plans to accept cryptocurrency payments for tax fees, a plan linked to other governments.

“We hope this summer, soon, to accept crypto for all our state tax-related purposes, and then we plan to roll it out in all state governments for things [which] could be as simple as driving licenses or hunting permits.”

While Colorado will accept cryptocurrencies for payments, the government does not currently plan to hold them because cryptocurrencies are too volatile. Any crypto that the country accepts as payment will be converted to USD in real-time.

“We cannot be in a business that has exposure to a market where securities, including cryptocurrencies, fluctuate.

Our expenses are still in dollars. You never know what the future holds, but all of our spendings are in dollars, our budgets approved by the legislature are in dollars, so when we talk about accepting cryptocurrencies for payments, they will be converted back into dollars for our purposes.”

Last year, the 43rd Governor of Colorado first made the point by declaring that Colorado residents would be able to pay taxes with cryptocurrencies. The police also added that several cities in the state might follow Miami and New York's lead and create their own CityCoins.

“We have this great state senator, senator Chris Hanson, who is pursuing a digital token bill that will effectively allow state-generated digital tokens to be used for state reserve purposes.”

Although Polis plans to receive tax payments with crypto in mid-2022, the exact time is not yet known. In addition, there is no information on whether the residents of Colorado accept the decision or not.