Colorado will become the very first US state to accept crypto assets as payment. The citizens can pay taxes as well as other state fees using cryptocurrency units.
Current Colorado Governor Jared Polis made an official statement on Wednesday. The governor is well-known to show interest in cryptocurrency as well as blockchain. In fact, he is considered a pioneer or vanguard in the transitory course of politics and crypto.
He even accepted Bitcoin as donations for his US Congress running campaign back in 2014. But he had to win a Federal Exchange Commission ruling first in his favor.
He made multiple decisions in favor of blockchain in the previous years. Colorado is one of the first states to use blockchain tech for government infrastructure.
Colorado will take digital coin payments to allow the citizens to deliver taxes. Of course, everybody must deposit the equivalent value in USD into the state’s treasury.
Colorado has been trying to lay a favorable groundwork for several years – Polis said in the statement. He also clarified his aim to make Colorado a center of crypto and blockchain innovation. And they’re seeing the decision as a critical part of Colorado’s overall innovative ecosystem.
But whether the project will succeed is absolutely uncertain like the crypto volatility. The governor didn’t even confirm any particular crypto/cryptos for the project.
Colorado isn’t exactly the first state to try cryptocurrency for tax payment. Ohio actually implemented a pilot project back in 2018. The project’s unsuccess forced the authority to abandon the idea in 2019.
Still, Colorado is the first to welcome cryptocurrency for payments officially.
Legislators from different states like Arizona and California are also talking about possible ratification. But they are targeting crypto as a payment option rather than allowing tax payments only.
Likewise, critics aren’t happy with the decisions and interests in any way. They keep pointing at the extreme volatility and massive inflation in economics.
Also, Polis expressed interest to enable full processing of cryptocurrency acceptance by this summer. However, the decision is yet to be announced at a more specific time.