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US Residents Poised to Accept Federal and State Tax Refunds in Bitcoin

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Yesterday, Bitpay, a leading crypto payment processing firm, announced that it had joined hands with Refundo. Refundo provides tax-related financial products and services. This partnership launched a program dubbed CoinRT. This program will let US citizens get all or part of their federal and state tax refunds in bitcoin.

Roger Chinchilla, Refundo’s CEO, believes that more people will adopt BTC once they understand its importance.

Refundo Uses BTC to Help the Underbanked

CoinRT is set to benefit low-income individuals who will receive their first large amounts of BTC. Refundo seeks to improve financial access for the US population that is poorly banked. Chinchilla believes that using BTC would ensure seamless refunds especially for individuals that don’t have access to reliable banking.

Chinchilla said,

We’re always looking at low-cost and convenient methods to disburse our clients’ refunds. As bitcoin adoption steadily grows, Refundo believes we can serve as an innovative payout process for our clients. Refundo’s focus has been on serving the underbanked, which is at the core of bitcoin’s rise, so it’s a natural fit. More than that, it gives taxpayers an incentive to save. Instead of splurging when your refund arrives, CoinRT can act as a saving mechanism and ensure taxpayers are more fiscally responsible.

Demand for More Digital Choice Increases

CoinRT gives taxpayers an account, a unique routing and account number to input on their tax returns. Refundo users that want their refunds in BTC have to provide their identities for KYC. They also have to provide a valid BTC address. When their refunds come in, Bitpay converts the funds to BTC and sends the coins to their wallets.

According to Rolf Haag, Bitpay’s head of business solutions, this partnership will help Refundo offer its customers bitcoin payouts for their tax refunds. CoinRT will help the firm meet the increasing demand for more digital options from its customers. This collaboration will also increase Bitpay’s payouts in the global marketplace.

Rolf noted that,                       

Recipients want choice, especially for high cost alternatives like bank wire receipts or pre-loaded debit cards. Recipients are tired of paying to receive, and senders want to make their recipients happier without incurring additional costs.

In a move to embrace crypto, Innisfil, a Canadian town set a record of being the first North American municipality to allow its residents to pay their taxes in bitcoin. Ohio also introduced a bitcoin payment option for its corporations late last year.

Do you think the partnership between Bitpay and Refundo will improve financial inclusivity? Let us know in comments below.

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