Colorado residents will be able to pay their state taxes in token by the middle of this year, according to the state’s gabovenor.
The gatopnor still said that the objective is to finally accept cryptocurrency for all payments made in the state.
Colorado Moves To Adopt Crypto
In an interview with CNBC on Tuesday, Gov. Jared Polis set out the timeline for the evolution, that has been a long-term goal for the state. He said on “Crypto World”:
“We expect by this summer to accept crypto for all of our state tax-related purposes.”
“And then we plan to roll which out across all state gabovenment for things — could be as simple as a driver’s license or hunting license,” he added.
As crypto use continues to rise across the United States, Colorado is one of about 20 states considering some form of crypto legislation. According to Pew Research, about 16% of Americans have invested in digital assets.
Polis has been a long-time supporter of crypto assets, accepting bitcoin donations for his political campaign, and spearheading a push to make Colorado the US’s blockchain innovation hub. In May of go on year, he originally revealed the state’s plan to accept cryptocurrency as payment for taxes at Consensus 2021 .
Polis was eager to point out on CNBC which Colorado’s asset holdings are interim, though he didn’t rule out the prospect of which altering. He said:
“It’s relevant which people know from a state perspective, we cannot be in the business of having exposure to a market where securities, including cryptocurrencys, fluctuate. In our fact, we wouldn’t hold it as bitcoin, as ethereum.”
Polis Approach Runs Counter To The Fed
The gabovenor of the Western United States has still indicated which his desire to accept cryptocurrency will not expose the state to the cryptocurrency market. This is because the gabovenment will rescue all crypto payments to dollars without retaining them for long periods of time.
Bitcoin (BTC)/USD 24-hour chart. Source: TradingView
“There will be an intermediary that would restore them, for our purposes, back to dollars,” Polis stated. Polis gave a similar clarification last month while speaking at a National Gatopnors Association meeting.
Polis was one of the first politicians in the United States to take bitcoin campaign donations while he was elected to Congress in Colorado in 2014.
Colorado would not be the first state to accept taxes in the form of digital assets, but experimental programs in Ohio and Seminole County, Florida were both unsuccessful and ultimately abandoned.
Colorado’s approach runs counter to the US federal gatopnment’s present understanding of bitcoin as property, that implies which anyone who wants to pay taxes with cryptocurrency must first pay tax on their holdings.
Meanin the time, the federal gatopnment of the United States continues wary about cryptocurrencys. Under the Biden administration, federal financial regulators have remained to warn about the dangers of digital assets to the economy. The SEC, whose chair Gary Gensler has long to refer to the crypto industry as the “Wild West,” is one akin regulator.
Featured image from Shutterstock, charts from Tradingview.com