Starting Monday, businesses in Ohio will be able to pay their taxes in bitcoin making the state the first in the nation to accept cryptocurrency officially.
The idea to pay taxes with bitcoin comes from the state’s Treasurer Josh Mandel. Mandel believes the new program is both convenient for tax filers and helps in ‘planting a flag’ for Ohio’s cryptocurrency adoption.
Using Bitpay to make transactions
Ohio will use bitcoin payment processor, BitPay, to help process the tax payments. Ohio filers will send their tax payments to BitPay, which will convert the bitcoins to dollars for the state treasurer’s office.
While Ohio’s move doesn’t give bitcoin legal status, it does provide a tacit approval of bitcoin from state regulators.
That adds much-needed legitimacy to the coin as it is gripped by one of its deepest bear markets.
How to pay using bitcoin?
Companies who want to take part in the program simply need to go to OhioCrypto.com and register to pay whatever taxes their corporate hearts desire in crypto.
It could be anything from cigarette sales taxes to employee withholding taxes, according to a report in The Wall Street Journal, which first noted the initiative.
Yep even cigarettes and any other sales taxes!
I feel that this is a big move for the government to officially start accepting cryptocurrency. It will be interesting to see people getting their retirement benefits paid through cryptocurrency in the future.
Other states around the country in the southeast, southwest and midwest also considered accepting bitcoin for taxes, but those initiatives in places like Arizona, Georgia, and Illinois never got past state legislatures.