Colorado Will Accept Crypto to Pay State Taxes This Summer: Gov. Police

  • Colorado will accept cryptocurrency in payment for state taxes by this summer, Gov. Polis said Tuesday.
  • The state won’t hold any crypto, as payments will be converted to US dollars by an intermediary.
  • “Just like accepting a credit card, but with a much lower transaction cost that a credit card,” he told CNBC.

People in Colorado will be able to pay their state taxes in cryptocurrency by the middle of this year, the US state’s governor has revealed.

Gov. Jared Polis laid out the timing of the move, a longtime ambition of the state, in an interview with CNBC Tuesday.

“We expect by this summer to accept crypto for all of our state tax-related purposes,” he said on “Crypto World”.

“And then we plan to roll that out across all state government for things — could be as simple as a driver’s license or hunting license,” he added.

Colorado is one of 20 or so US states that are considering crypto legislation of some kind, as crypto adoption continues to grow across the US. About 16% of Americans have invested in digital assets, according to a Pew Research report in November.

Polis is a longtime proponent of crypto assets — he has accepted bitcoin donations to his political campaign — and he has spearheaded a push to position Colorado the center for blockchain innovation in the US. He first revealed the state’s plan to accept crypto in payment for taxes in May last year.

On CNBC, Polis was quick to note that Colorado is restricted in what assets it can hold — although he didn’t rule out the possibility of that changing.

“It’s important that people know from a state perspective, we cannot be in the business of having exposure to a market where securities, including cryptocurrencies, fluctuate,” he said.

“In our case, we wouldn’t hold it as bitcoin, as ethereum,” he added.

The governor noted that the state of Colorado’s expenses are in dollars, and the approved budgets are in dollars. Given that, crypto payments to the state will need to be immediately changed into US dollars, according to Polis.

“When we talk about accepting crypto for payments, they would be converted back into dollars for our purposes. So there’d be an intermediary there that would then convert them,” he said.

“Just like accepting a credit card, but with a much lower transaction cost that a credit card,” he added.

Colorado’s move is at odds with the current US federal government view of cryptocurrency as property, which means anyone wishing to pay taxes with cryptocurrency must first pay tax on their holdings.

Read more: A Morningstar investing chief says US stocks need to fall by at least 20% before they start looking attractive and lays out the triggers for a full market crash — as well as 3 sectors that still offer good value

Leave a Comment

Businesswebsiteindex