Colorado expected to be the 1st State in the US to accept Cryptocurrency Taxes I CR

The governor of Colorado has announced that the state will accept Cryptocurrency payments converted into USD values, which would be deposited in the state treasury.

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Colorado to become first US state to accept cryptocurrency tax payments

The State of Colorado plans to be the first in the United States to allow tax payments in cryptocurrency, according to a statement from the governor’s office. The move has been characterized as “the next logical step on the road to digital statehood” by officials in Governor John Hickenlooper’s administration.

The state of Colorado is currently considering allowing crypto payments to be converted into a dollar value and then deposited in the state’s treasury, according to governor Jared Polis, who announced the plan last week explained in a tweet.

Colorado to become first US state to accept cryptocurrency tax payments

The governor, together with other officials and business leaders, announced a new initiative in May to drive Colorado’s crypto economy. For years, the authorities have been building the infrastructure in Colorado to make it a cryptocurrency and blockchain innovation center, according to another Instagram post by Governor Jared Polis. “We consider it to be an essential component of the state’s overall innovation ecosystem,” he said. “Starting this summer, Colorado will accept cryptocurrency for state tax and fee payments.”

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In a recent CNBC interview, Polis said the payments will be handled by an intermediary and that the project is expected to begin before the summer. Polis said he wants to expand the program to include other state government services such as driver’s licenses and hunting permits.

Polis is a Colorado native who, as a former tech entrepreneur, has spoken at crypto conferences, discussed his plans to make Colorado the leading state for cryptocurrency with Wired, and even suggested that the state’s cattle brand system be moved onto the blockchain.

In a statement to The Guardian, Polis’ press secretary Conor Cahill referred to the tax effort as Colorado’s “next logical step on the road to digital statehood.”

“Governor Polis is thrilled to collaborate with business, education, and government representatives across the state to build a flourishing and exciting crypto economy that will position Colorado at the forefront of digital innovation,” Cahill added. “The state was also the first to hire a ‘chief blockchain architect.’–According to the governor’s office, “we will work with several other organizations to process cryptocurrency for taxes.”

However, there may be some drawbacks. According to CNBC, the federal government considers cryptocurrencies “property,” which implies their owners will have to pay taxes on them before they can be used as a method of payment. It’s not yet clear whether the news will deter some people from using cryptocurrency to settle their taxes.

Polis’s announcement was met with a variety of reactions on social media.

“It’s a great method to assist the state’s tourism sector, which is being battered by climate change! Great thinking!” one user responded to Polis’ post.

Colorado to become first US state to accept cryptocurrency tax payments

“I’m still learning about crypto. But I do know how to make delicious chocolate chip cookies,” noted another. “Will Colorado accept homemade chocolate chip cookies?”

Colorado to become first US state to accept cryptocurrency tax payments

Colorado’s move follows similar efforts in other states to make crypto more accessible. Sales tax will be payable through bitcoin in Wyoming, whereas Arizona intends to accept bitcoin as legal money.

New York City’s mayor, Eric Adams, received his first paycheck in cryptocurrency after starting an office in January. He had promised to accept his first three paychecks in bitcoin, in an effort to make New York the “global capital for cryptocurrency.

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