Colorado could begin accepting tax payments in cryptocurrencies like Bitcoin as early as next August, according to the state government.
Jared Polis, governor of the state of Colorado and supporter of cryptocurrencies, revealed his plans to allow the payment of taxes with Bitcoin (BTC) and other cryptocurrencies, this year. If its plans are consolidated, Colorado will be one of the first states in the country to allow its residents to pay their taxes with crypto assets.
Polis wants to collaborate with a crypto financial services provider to support the payment of state taxes with a wide range of cryptocurrencies, including the most important ones on the market. According to its statements en CNBC Crypto World, aims to boost the use and acceptance of cryptoassets, such as BTC, within the state of Colorado, giving Bitcoiners and citizens in general access to new everyday use cases for these digital assets.
The governor of Colorado also discussed the possibility of a state token, although he did not elaborate further.
It may interest you: ETHDenver, America's largest Ethereum event, boosts Colorado's leadership in the crypto industry
Paying taxes with Bitcoin
During the interview, Polis clarified that Colorado has no intention of holding cryptocurrencies within its state treasury; rather, the state will use the crypto financial services provider to instantly convert the value received in cryptocurrencies for tax payments into fiat.
Although the state will not hold crypto assets, Polis said that using cryptocurrencies as a means of payment will help reduce costs and transaction time significantly, offering greater convenience to citizens and residents.
The adoption of Bitcoin and other crypto payments will also help Colorado gain leadership within the crypto industry. The state, which is among the 10 largest in the United States by area, wants to become an innovation hub for the crypto and blockchain industry. Polis noted that in addition to taxes, cryptocurrencies could be used in other transactions within its territory, further promoting and simplifying their use in everyday life.
States such as Florida and Ohio have carried out pilot programs to allow their residents to pay taxes with crypto assets, although they have not been as successful as expected.
ETHDenver 2022
Currently, the city of Denver, the capital of Colorado, is home to the largest annual Ethereum event, ETHDenver 2022As explained by this newspaper, ETHDenver is a free community event, organized by the DAO SporkDAO, where thousands of people, builders and developers meet to contribute to the growth of the global ecosystem of Ethereum, blockchain technology and cryptocurrencies.
This year's edition focuses on decentralization, NFTs, and the Metaverse, immersing attendees in unique immersive experiences, art galleries, and much more.
Polis, who has always been friendly to cryptocurrencies and blockchain, is determined to make Colorado a haven for the crypto industry by attracting investors, creating jobs, developing spaces for mining, digital identity and much more. In 2014, Polis became the first American politician to accept donations in cryptocurrency.
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