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Colorado to Be First State to Accept Cryptocurrency for Tax and Fee Payments

By:
Ruth Singleton
Published Date:
Mar 1, 2022

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Jared Polis, the governor of Colorado, has announced that the state will begin to accept tax and fee payments in cryptocurrency this year, the Guardian reported.  Gov. Polis said in a tweet that Colorado would accept crypto payments converted into a dollar value, which would then be deposited in the state’s treasury. 

In a recent interview with CNBC, Gov. Polis described how the program would work: “Our expenses are in dollars; our budget … is in dollars. [The cryptocurrency] would be converted back into dollars for our purposes. There would be an intermediary there that would then convert them back to dollars. … We expect by this summer, pretty soon, to accept crypto for all of our state tax-related purposes. And then we plan to roll that out across all of state government—it could be as simple as driver’s licenses or hunting licenses—a few months after that.”

He added that each cryptocurrency “would be converted at the moment it was paid.” When asked about state-issued cryptocurrency, Gov. Polis responded, “It defies the very concept of crypto to have any government-issued or government-backed security. But I think we can benefit from it.”

A former tech entrepreneur, Gov. Polis has spoken at crypto conferences, discussed his plans to make Colorado a pioneering state for crypto and even proposed moving the state’s cattle brand system onto the blockchain, the Guardian reported. 

In a statement to the Guardian, Polis’ press secretary, Conor Cahill, called the tax effort the state’s “next logical step on the path to digital statehood.”

Other states have looked into incorporating cryptocurrency into government functions. Wyoming is looking into making sales tax payable through cryptocurrency, while Arizona intends to accept Bitcoin as legal tender. 

In addition, New York City Mayor, Eric Adams received his first paycheck in cryptocurrency (Bitcoin and Etherium) after starting office in January. In doing so, he kept a promise he’d made that he would accept his first three paychecks in cryptocurrency in an effort to make New York the “global capital for cryptocurrency.” 

 

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