Even though the United States is considered one of the largest cryptocurrency countries in the world, the country still lags behind regarding regulation and adoption of digital currencies. Things are changing though, and it now looks like the state of Ohio will become the first in the country to accept Bitcoin for taxes.
Ohio to lead the way in Bitcoin tax payment
A report by the Wall Street Journal on November 25 revealed that the state of Ohio has concluded plans to start accepting BTC as a means of tax payment. According to the report, the project will be for businesses and companies to start paying their taxes using Bitcoin, with individual taxpayers to be granted the privilege later on.
Businesses located in the state will have the opportunity to register to pay their taxes using Bitcoin. The report further added that BitPay, the crypto payment service processor would be in charge of processing payments made using the leading cryptocurrency.
State Treasurer Josh Mandel is the brain behind this initiative, according to the report. While addressing reporters, Mandel stated that he was looking to make Ohio the leader concerning cryptocurrency adoption in the United States.
He stated that “I do see [Bitcoin] as a legitimate form of currency.”
Mandel further stated that he is confident that the initiative the state has taken towards cryptocurrencies will continue even after his tenure ends by January next year. Considering the fact that he occupies an elected office, he was able to decide that the Treasury Department will accept Bitcoin even if they don’t have approval from the legislature or governor.
Several U.S states still working on crypto tax payment
While Ohio has already approved the payment of Bitcoin for tax, several states in the country have submitted bills proposing similar projects as well. However, state lawmakers continue to delay the final passing of the laws.
Back in May, the Arizona House of Representatives approved the tax bill that would enable citizens of the state to pay their taxes using cryptocurrencies. However, the initiative has been delayed due to amendments.
Prior to that, the U.S. state of Georgia in February also introduced a bill that would see cryptocurrencies become a legitimate form of payment for taxes and other licenses in the state. However, the status of the bill has been stifled and died in committee.
Swiss cantons continue to adopt crypto payments
The story is different in Switzerland as cryptocurrency payment continues to grow. The municipality of Chiasso, Switzerland has concluded plans to start accepting Bitcoin as a means of tax payment.
The law will come into effect next year after consultation with the various blockchain groups in the region. The town which is now known as the “CryptoPolis,” is now recognized globally as crucial to technological and economic growth in both canton Ticino and the whole Switzerland, according to Chiasso’s Mayor Bruno Arrigoni.
Even though another Swiss municipality, Zug, announced that its citizens could pay for government services in digital currencies already two years ago, it has yet to enable them to pay their taxes using Bitcoin.