The US state of Ohio has been accepting tax payments in Bitcoin since this week. Companies can register for the service via an online platform and then pay a variety of taxes with Bitcoin.
Bitcoin revolution from San Francisco then converts the payments into US dollars
The squirrel feeds itself laboriously. This phrase also applies to the Bitcoin revolution adoption, because the path from asset class to means of payment is long. Nevertheless, the message about the Bitcoin revolution acceptance for the settlement of tax debts in the US state of Ohio in stormy crypto times is good news.
But one thing at a time. As the Wall Street Journal reports (Attention Paywall), citizens of the U.S. state of Ohio will soon be able to pay a variety of different taxes in Bitcoin. These include VAT, payroll taxes and certain taxes on consumer goods such as gasoline and cigarettes.
Until now, only companies have been able to pay their taxes in Bitcoin. They must register via the ohiocrypto.com website. However, according to the report, the state plans to expand its tax system to include taxable private individuals in the medium term.
Crypto friend Mandel as Bitcoin loophole architect
The driving force behind the Bitcoin loophole project was Ohio Treasurer Josh Mandel. The Republican is considered a strong proponent of crypto currencies: https://www.forexaktuell.com/en/bitcoin-loophole-scam/ For me, Bitcoin is a legitimate form of money, the politician told the Wall Street Journal.
According to the U.S. Treasury Department, the agency identifies six reasons why companies should take advantage of the new offer: The speed of payment processing, low fees, blockchain tracking, greater transparency, a high level of payment flow security, and the ability to initiate mobile payments.
According to Mandel, the online service will be open from the beginning of this week:
„From the beginning of this week, companies in Ohio will be able to register on ohiocrypto.com and pay various taxes with Bitcoin. At some point, the service will be extended to private individuals.“
In collaboration with Bitpay
However, the state relies on the payment provider Bitpay for payment processing. The San Francisco-based company will soon convert the Bitcoin into US dollars. This step is necessary because the US dollar is the only legal tender in the country.
Even if the taxes are not booked in the form of Bitcoin, the step is a clear signal from the Ohio administration to be positive about crypto currencies.