The state of Ohio has been accepting tax payments in Bitcoin since this week. Through an online platform, companies can register for the service and then pay a variety of taxes with Bitcoin. San Francisco’s Bitpay will then convert the payments into US dollars.
As the Wall Street Journal reports (Paywall Attention), Ohio citizens will soon be able to pay a variety of different taxes in Bitcoin. These include VAT, payroll tax and certain taxes on consumer goods such as gasoline and cigarettes.
So far, only companies can arrange for the payment of their taxes in Bitcoin. These must register via the website ohiocrypto.com . However, according to the report, the state plans to expand to taxable individuals in the medium term.
Crypto friend Mandel as an architect
The driving force behind the project was Ohio Treasurer Josh Mandel. The Republican is considered a strong proponent of cryptocurrencies:
“Bitcoin is a legitimate form of money for me,”
said the politician to the Wall Street Journal.
The agency identifies six reasons why companies should use the new offer, such as the speed of payment processing, low fees, blockchain tracking, better transparency, a high level of cash flow security and the ability to to initiate mobile payments.
Mandel said that the online service should be open from the beginning of this week:
“Starting this week, companies in Ohio can register on ohiocrypto.com and then pay different taxes with Bitcoin. At some point, the service will be extended to private individuals. “
Ohio’s success in this endeavor may come from a simple difference in strategy compared to the other states: Ohio is attempting to quietly introduce bitcoin-friendly tax initiatives, rather than having a well-publicized effort to push through a general amendment without the political drive to see it all the way through.
Still, while not as far-reaching as the efforts for a general tax reform in other states, this move in Ohio will provide a valuable test run for the ability of the U.S. government to collect taxes in bitcoin. Mandel claimed that the plan for this initiative is for Ohio to be “planting a flag” in cryptocurrency’s wider adoption. Indeed, the success of a project such as this could prove a powerful argument in the efforts to pass similar tax legislation across the country.
Categories: Crypto Currency