The Governor of Colorado Jared Polis, announced on February 23, 2022, that the state would begin accepting crypto as payment for state taxes. According to Polis, the state would accept crypto payments and deposits in equal value in dollars into the state treasury.
Details of the Governor’s Announcement
According to a statement by Governor Polis, his administration has been laying the groundwork to make the state a center for crypto and blockchain innovation for years. According to him, he sees it as an essential part of the overall innovation ecosystem in the state.
The governor stated that they would work with a payment provider who would accept crypto equivalent and deposit the dollars into the state treasury. He compared it to credit card payments, with the bonus that there would not be any returned payments.
Polis and the Crypto Sector
Polis has been a proponent of the crypto sector for years. Following a favorable judgment by the Federal Exchange Commission, Polis began accepting Bitcoin for campaign donations during his 2014 congressional race. According to Polis, the goal is to have the state accept BTC payments by the end of the summer.
Crypto is Gaining Widespread Acceptance in States
The use of crypto to pay taxes has been ongoing in various states. Currently, there are bills in California, and Arizona, which if passed would make crypto an approved method of paying state taxes and fees. In Ohio, such a scheme was already tried in 2018. The state later decided the scheme was ineffective and abandoned it in 2019.
In Hawaii, the state is currently seeking to pass bills that would make it legal for state agencies to accept crypto as payment for services. The bill represents a complete change in Hawaii’s attitude towards crypto, which has thus far had some of the strictest laws regarding crypto. However, if those laws are not passed soon, the state’s crypto sector could disappear. Florida has also been considering passing a bill that will make crypto payments legal. If the measures pass, state businesses would be allowed to pay their taxes in crypto.
Crypto Acceptance Around the world
Around the world, crypto acceptance has been growing. For instance, in El Salvador, crypto acceptance has been growing at the national level. The state’s legislature recently enacted measures that would see Bitcoin accepted as legal tender. It means citizens can legally transact using BTC in any transaction.
However, the acceptance of Bitcoin as payment for government services has its opponents. They feel that the volatility of the crypto sector and inflation could destabilize the economy of nations such as El Salvador. In January, the IMF issued a word of caution to the South American nation asking it to rescind the decision.
Growing Interest in the Crypto Sector
The crypto sector has been growing since the start of the pandemic. For instance, BTC grew over 135% during 2021 before it dropped from its all-time high in November of the same year. Despite this, crypto adoption has been growing globally.
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