Colorado will accept Bitcoin payments to collect taxes

Colorado will accept Bitcoin payments to collect taxes 2

US state Colorado is going to adopt Bitcoin officially in the payment system because of increasing trust in digital currencies as a medium.

After the entry of American country El Salvador in the Bitcoin adoption race, many other El Salvador-like countries & US states are considering adopting Bitcoin in their unique ways. In the latest, Colorado is ready with its plan to go with Bitcoin adoption.

Jared Schutz, Governor of Colorado, announced that the state agency will accept tax payments in Bitcoin. And this option will be available from the summer of this year. 

On 16 February, In speaking with CNBC, Jared Schutz Polis explained that the administration of Colorado was working on a framework to allow the citizens to use Bitcoin as a mode of payment option only for taxes. He also confirmed that residents will be allowed to pay not only in Bitcoin but also in other flagship assets also. 

“We expect by this summer, very pretty soon, to accept crypto for all of our state tax-related purposes.”

Crypto associated with risk factors 

The Colorado Governor said that citizens need to keep calm and wait to see the actual framework until we launch it, to understand how it will work perfectly. 

However, the Governor is supporting Bitcoin and crypto but still, he is skeptical about it. According to him, high volatility in the price of crypto assets may result in a change in the value of the tax payment collections and these things are a danger because of volatility. 

Governor further stated:

“It is important that people know from a state perspective we cannot be in the business of having exposure to a market where securities, including cryptocurrencies, flash away.”

Governor clearly explained that cryptocurrency-based payments will include only a medium of transactions instead of acceptance. He confirmed that the state agency will directly convert cryptocurrencies into US dollars. 

“Our expenses are in dollars so when we talk about accepting cryptocurrencies for payment they would be converted back into dollars for our purpose.”

Read also: Russian finance minister says ban on Bitcoin is impossible