Ohio companies to pay taxes in Bitcoins

Ohio will become the first state to accept cryptocurrency for taxes.
Payments will be processed by Bitpay.

Ohio might become the first US state where citizens will be allowed to pay taxes in cryptocurrencies, the Wall Street Journal reports. The companies registered in Ohio can register at OhioCrypto.com and pay with crypto all taxes, duties, and charges starting from employee withholding taxes to cigarette sales taxes.

“I do see [bitcoin] as a legitimate form of currency,” comments state Treasurer Josh Mandel, who promoted this idea to serve the interests of taxpayers and signal that the state is ready for the digital currency adoption.

Currently, the Treasury plans to accept the only Bitcoin, but in future, the list of digital assets may be expanded. According to the dedicated website, paying taxes id digital money is low cost, secure and transparent to due the inherent blockchain technology.

“Cryptocurrencies cannot be transferred to third parties without user initiation, thereby practically eliminating fraud; Anyone can view all transactions on the blockchain network; Payments on the blockchain can be tracked on a second-by-second basis; a minimal fee is charged to confirm transactions on the blockchain network.”

According to Jerry Brito, the director of Washington, D.C.-based research firm Coin Center, this move won't turn Bitcoin into a legal tender but provide the coin with so much needed tactical approval from the government, sending a message that government can use this technology along with all the rest.

Arizona, Georgia, and Illinois also considered a possibility to accept Bitcoins for taxes, but the idea was not approved. Mr. Mandel from Ohio hopes to push the bill without approval from the legislature or governor.

Technically, Ohio companies will send their Bitcoins to payments processor called BitPay, which will convert digital money into USD and direct them to state's treasury.

Share: Cryptos feed

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.