Colorado Governor Jared Schutz Polis recently stated that beginning this summer, his state will accept Bitcoin for tax payments.
Governor Jared Schutz Polis acknowledged to CNBC on Wednesday that his government is moving quickly to implement a framework that will allow Colorado residents to pay their taxes in Bitcoin and other cryptocurrencies.
“We expect by this summer, very pretty soon, to accept crypto for all of our state tax-related purposes,” he said.
The governor, who has long been a proponent of digital assets, particularly Bitcoin, went on to declare that they were on their way, urging locals to remain calm as they pondered how this would all work given the current price volatility of cryptocurrencies. Cryptocurrencies, he said, still pose a risk of uncontrolled volatility, which may alter the value of taxes paid in crypto.
“It is important that people know from a state perspective we cannot be in the business of having exposure to a market where securities, including cryptocurrencies, flash away,” he added, “our expenses are in dollars so so when we talk about accepting cryptocurrencies for payment they would be converted back into dollars for our purpose.”
To mitigate the negative effects of the volatility, he stated that they will hire an intermediary to “quickly” transfer the cryptocurrency to dollars.
Polis, who is also the first U.S. official to accept crypto campaign donations, said in May at a crypto conference that he would be “thrilled to be the first state to let you pay your taxes in a variety of cryptos,” and that he wanted Colorado to become the “next Silicon Valley.”
In addition to allowing citizens to pay their taxes in cryptocurrency, the governor promised that the initiative would be expanded to other, more basic areas of the state in the future.
“It could be as simple as a driver’s license or a hunting license within a few months after that, but the biggest set of transactions are the taxes that people pay and we expect to accept crypto by this summer,” he continued.
With cryptocurrency usage soaring around the world, particularly in the United States, policymakers are increasingly looking for methods to regulate the new industry, with taxation a top priority. Taxing crypto holders who sell their coins or crypto-related property such as NFTs