Ohio is set to become the first state in America to officially allow Bitcoin to be used for tax payments. This report published in the Wall Street Journal will be record breaking in the crypto market and the entire US.
The Beginning Of Business
As from this new week, businesses operating in Ohio will have a new option of making their tax payments. They can now do it comfortably using the cryptocurrency. The first thing they will be required to do is to visit OhioCrypto.com. This is where they will be able to register and use Bitcoin to pay all their corporate taxes to the state.
It is a partnership that the state of Ohio has done with BitPay, a renowned Crypto payment processor. Apart from handling all the payments done in cryptocurrency, BitPay is set to do other things. The other important role is to convert the crypto payments to dollars for the tax office.
The Origin Of The Idea
Cryptocurrency and the blockchain technology have been one of the fastest growing technologies this year. That has led to the crypto being used for tax payments in Ohio now. This great idea was incepted by Josh Mandel, the current treasurer of the state. Mandel views the whole cryptocurrency as a great way that can be used to rebrand the Buckeye State. But this can only be possible if forward-thinking technological ideas such as these are allowed.
There are so many reasons why BTC hasn’t grown to be the best means of payment for goods and services in the United States. This is mainly because it has been used for speculative purposes, and the huge price volatility.
The high price volatility is one of the reasons why many merchants do not want to accept the crypto, especially in the US. However, when giant payment processors such as Coinbase and BitPay are part of the deal as it is in Ohio now, then there is no need for worrying about the volatility.
Bitcoin: The Legitimate Currency Form
Since he was appointed as the state treasurer in 2011, Mandel has had a great love for the flagship crypto, Bitcoin. To him, BTC is the only legitimate form of the [virtual] currency. The analysts have, however, observed that the move by Ohio might not do much to influence the cryptocurrencies free fall. Nonetheless, it is still a win for the crypto and a kind of state approval that the virtual coin has been lacking in the United States.
Jerry Brito, the director of an established crypto research and lobbying organization known as Coin Center was as quoted in the Wall Street Journal. Brito strongly believes that there is a strong message that is sent across when government bodies such as the state treasury accept BTC.
This shows that Bitcoin has become a technology for all. Others states such as Illinois, Georgia, and Arizona have also considered using the cryptocurrency for payments. The bills, however, did not make their way out of the legislative chambers.