Ohio to Begin Accepting Tax Payments in Bitcoin

Home » FinTech » Cryptocurrencies » Ohio to Begin Accepting Tax Payments in Bitcoin

Ohio to Begin Accepting Tax Payments in Bitcoin

Business owners in the Buckeye state will soon be able to pay for various taxes using Bitcoin. As the Wall Street Journal reports, later this week OhioCrypto.com will enable businesses to register and pay taxes using BTC. Sometime down the road, a similar option will also be available to individual taxpayers. This news, while not huge in its own right, could actually mark a fairly significant milestone for cryptocurrency.

With this new endeavor, Ohio will become the first state to accept Bitcoin payments for tax bills. You may recall that other states such as Arizona were attempting to enact legislation that would allow for such a change, but many of those bills have stalled. In contrast, Ohio State Treasurer Josh Mandel says his department has the authority to allow Bitcoin payments without any legislative or executive action.

Speaking to WSJ, Mandel said he viewed the move as a convenience but that he also hoped that’d he’d be “planting a flag” for cryptocurrency adoption in Ohio. Mandel went on to say that he viewed Bitcoin as “a legitimate form of currency.” As a result the Treasurer says he’d like to see other states follow his lead on the matter.

While it’s unclear how many small businesses or individuals might take advantage of the ability to pay their taxes in Bitcoin, the move does grant cryptocurrencies a kind of government acceptance rarely seen up to this point. For years cryptocurrencies had been associated with “the dark web” and illicit practices that some early adopters may have participated in. That’s why Jerry Brito of the research firm Coin Center says this gesture on Ohio’s part could start to change perceptions about Bitcoin. Brito explains that the new policy “does help send a message that Bitcoin’s a technology that can be used by anybody — by bad guys but also by the government.”

Incidentally OhioCyrpto.com’s launch comes as Bitcoin is experiencing some major price troubles. After breaking below its perceived $6,000 floor earlier this month, the currency has continued to fall and is currently trading at less than $4,000 per coin. That not only represents its lowest level since September 2017 but also marks a 40% decline so far this month.

One final note is that Mandel’s term as State Treasurer comes to an end in January. This has led to some speculation as to whether his Bitcoin tax payments plan will end up only living a short life. Despite those concerns Mandel says he is “confident that this cryptocurrency initiative will continue.” Hopefully Mandel is right in that assertion — and that his efforts might help boost a currently-flailing Bitcoin.

Comments

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

GOBankingRates Ranks Top U.S. Cities Where Entrepreneurs Thrive

When most people hear the term “startup” it’s common for areas like Silicon Valley to come to mind. That’s why some may be surprised to learn that, when it comes to starting a small business, the U.S. map is filled with cities where entrepreneurs are thriving. Now GOBankingRates (GBR) has...

Acorns App Makes it Easy to Save and Invest 26

We’ve all probably heard it said that the key to building wealth is investing. Unfortunately, especially among those of a younger generation, getting started with investing can seem intimidating, preventing many from even trying. Enter Acorns — a mobile app that looks to make investing not only easy but also...

Bankrate Study Finds Credit Card Debt Rising, Emergency Funds Falling

We’ve often heard frightening statistics about how few adults could cover an unexpected expense of only a few hundred dollars. Additionally the amount of credit card debt Americans hold has topped $1 trillion in recent years. Now a new survey by Bankrate has some more bad news: the percentage of...