Colorado Supports Tax Payments In Crypto
Last updated on December 4th, 2022 at 09:35 pm
The level of crypto adoption in the U.S. has grown significantly over the past few months. 2021 saw several U.S. politicians change their harsh stance against cryptocurrencies and start endorsing the sector.
Moreover, the U.S. is currently one of the largest crypto economies and it is the largest Bitcoin miner by hashrate.
Due to the increased popularity, state governments are looking for ways to endorse the sector and lure more crypto businesses.
Colorado To Accept Crypto Tax Payments
Colorado has announced it will start accepting tax payments in cryptocurrencies, making it the first state in the U.S. to do so. Several media reports have confirmed this news, which could be the start of widescale crypto adoption across all states in the U.S.
The governor of Colorado, Jared Polis, is at the forefront of this initiative, saying that it will be “the next logical step on the path to digital statehood.”
Polis has also confirmed this report in a Twitter post, saying that it was working on the technicalities of making this possible. One of the technicalities is selecting a payment provider that will facilitate the payments.
Polis also appeared in an interview with CNBC where he stated that this payments option would be available over the next few months. The governor also added that he was transforming Colorado into a digital economy.
Polis is an entrepreneur in the technological sector, and he could now be luring more people towards blockchain and integrating this technology into various sections of the state’s economy.
Conor Cahill, the press secretary to Polis, commented on this development, saying,
“proud to lead efforts to create a strong and dynamic crypto ecosystem that puts Colorado at the forefront of digital innovation.”
While most of the details regarding this new project have not been laid out, it will be intriguing to see how the entire process will work and how the crypto tax payments will be processed alongside fiat payments.
The Internal Revenue Service (IRS), the tax body in the U.S., has also shed light on the cryptocurrency market and how taxes can be collected from the sector. The IRS has also called upon the U.S. Congress to tax capital gains from cryptocurrency investments.
Crypto Use In U.S.
Various states are fighting to dominate the cryptocurrency sector. Florida is currently taking the lead in these efforts.
The mayor of Miami, Francis Suarez, a popular Bitcoin bull, said that he would accept his salary in Bitcoin. Suarez has also developed Miami Coin, a state-backed token that has generated significant revenues for the city.
New York is also following suit to become a cryptocurrency hub.
The mayor of New York City, Eric Adams, announced that he would receive his first three paychecks as mayor in Bitcoin. The mayor received his first salary as the mayor of New York in Bitcoin and Ethereum.
Despite this growing adoption among states, the U.S. Securities and Exchange Commission (SEC) is yet to develop a comprehensive crypto regulatory framework.
Led by President Biden’s latest executive order, the U.S. is looking for ways to profit from and regulate the cryptocurrency sector.
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