Colorado will accept bitcoin for state taxes

Colorado will soon begin accepting bitcoin as a means of paying taxes, Governor Jared Polis said in an interview Tuesday with CNBC.

“We plan to accept crypto by this summer” for all state tax purposes, Polis said.

Polis added that Colorado plans to allow bitcoin and cryptocurrency payments for other state-related fees in the months following the tax rollout. Soon, a Colorado resident might be able to pay for his driver’s license with bitcoins.

“We are a very forward-looking and innovative state,” he said.

However, Polis stressed that the state will immediately convert cryptocurrencies received in payment into US dollars to fulfill its obligations and comply with its current accounting standards.

“All of our expenses are in dollars, our budget is approved by lawmakers in dollars, so when we talk about accepting crypto for payments, they would be converted back into dollars for our purposes,” Polis said.

The conversion would be carried out by a third-party entity, Polis said, which would act as an intermediary between the taxpayer and the government, facilitating the exchange of bitcoin and fiat currency as needed.

Polis also said he believes protecting citizens’ privacy is a “key role” of government.

US states have been scrambling to pass the most welcoming legislation for bitcoin as they seek to become a hub of innovation in the space by attracting companies and entrepreneurs to create jobs and bolster economic growth. local economy.

New Hampshire on Monday created a Bitcoin and Cryptocurrency Study Commission to research ways the state could foster innovation in its economy. In Missouri, on the other hand, bitcoin may soon be completely exempt from state taxes, while Tennessee wants to buy BTC itself. However, Arizona goes one step further by proposing to make bitcoin legal tender in the state.