Ohio will be the first state in the United States to receive tax payments in Bitcoin cryptocurrency, at the official level – as reported by the Wall Street Journal.
Starting this week (November 26, 2018), companies that are planning to pay tax charges in Bitcoin should register on the state website – OhioCrypto.com. After registration, all corporate taxes can be paid by Bitcoins.
"Ohio seems to have become the first state to accept Bitcoin for tax bills, demonstrating support for technology that has gathered a lot of hype, but was never able to achieve the status of the official form of payment." – Paul Vigna для Wall Street Journal.
As you know, the Ohio state government cooperates with the BTC payment processor – BitPay. According to the Wall Street Journal, this payment system will be used to process crypto-payments and convert them into dollars for the tax service.
The idea was proposed by Josh Mandel, the current state treasurer, who believes that adopting cryptocurrency is a great way to rebrand the Buckeye Institute in Ohio.
The Buckeye Institute (Ohio) is a non-partisan analytical center for public policy in free markets. Main areas of activity: taxes, education, market research and analysis.
According to J. Mandel, before that Bitcoin was used for speculative purposes (in most cases) in the USA, since it did not become a means of paying for goods and services. The main reason for the speculative use of cryptocurrency: the huge price volatilityVolatility
– is a financial term that means a statistical indicator of price change. In the cryptocurrency world, it is used by traders as an indicator for managing financial risks. That is, it is a measure of trade risk and as a financial analytical tool for gambling. Details, which makes many traders and users "nervous". Although, according to the state treasurer, this is not something that should be worried when using a payment processor such as BitPay or Coinbase.
Mandel, who has been interested in Bitcoin since his appointment in 2011, said he sees cryptocurrency "as the legal form of currency".
While Ohio “accepts” cryptocurrencies at the legislative level, this will not significantly affect the free fall of the cryptocurrency market. Although some experts consider this bill a "win" for digital gold.
The WSJ was quoted by Jerry Brito, director of the Coin Center, a cryptocurrency research and lobbying firm, who said that: "(...) a government agency such as a government treasury accepting tax payments in Bitcoins indicates that Bitcoin is a technology that anyone can use (...) Cryptocurrency will suit not only the “bad guys”, but also the government" – Jerry Brito is executive director of Coin Center.
Recall that other states in the United States that considered Bitcoin payments in the tax field: Arizona and Illinois. But the bills on cryptocurrency were met with great legislative resistance.
Editor: Alyona Nabok