As of Monday, November 26, 2018, the state of Ohio became the first U.S. state to accept Bitcoin (BTC) as payment for taxes. This initiative is of great importance for Bitcoin enthusiasts as it marks one of the first governments in the world to accept cryptocurrency.
As first reported by the Wall Street Journal, the acceptance of crypto for tax payments in Ohio will only apply to businesses. As for individual taxpayers, the state has plans to extend this offering to them in the future.
Companies that want to pay taxes in crypto can go to the website: OhioCrypto.com and register to pay with cryptocurrency.
Once registered, companies are able to use crypto to pay 23 kinds of business taxes from sales tax, utility tax, to employee withholding taxes and more. BitPay, a crypto payments service provider based out of Georgia in the United States, will process all crypto tax payments.
Bitcoin: A Legitimate Currency
Josh Mandel, the Ohio State Treasurer, wants the state to remake itself with a tech-friendly image. He hopes people will know Ohio for its cryptocurrency adoption.
As stated by the Treasurer’s office:
[We are] working to help make Ohio a national leader in blockchain technology.
Mandel also stated he sees Bitcoin as a “legitimate form of currency” and he is confident his cryptocurrency initiative will continue even after his term ends in January.
Not only does Mandel see Bitcoin as a legitimate currency, but he understands the benefits and potential of blockchain technology. Which is why he and the Treasurer’s office are also open to accepting more cryptocurrencies in the future.
On the official Ohio Treasurer’s website, they explain why they are adopting crypto payments:
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 blockchain network.
Ohio Aims To Be a Blockchain Technology Epicentre
The move to accept crypto for paying taxes in Ohio is directly inline with the state’s initiatives to become a technology epicentre and national leader in blockchain technology.
Ohio has already been forming a technology hub in Columbus, which is home to Drive Capital, the largest venture capital funds in the Midwest. Another up and coming tech city in Ohio is Cleveland, where a blockchain initiative known as “Blockland” is trying to create a local economy based on blockchain technology.
It’s clear that Ohio is embracing the use cryptocurrencies and promoting the development of blockchain technology because they understand and see the potential this technology has to improve the day-to-day lives of their citizens.
Now that Ohio accepts crypto for the payment of taxes, do you think other states will follow suit? Let us know in the comment section below.