Colorado Now Accepts Tax Payments in Cryptocurrencies

As the global adoption of the crypto streak continues, the government of Colorado State has now gotten onboard as it now allows all tax payments in crypto assets. This is according to news shared on the state’s website.

Since the state can not directly accept crypto payments it partnered with payment processing giant PayPal to proceed with these payments on its behalf at a cost.

The initiative which was piloted at the beginning of September has now become fully operational allowing all residents the option of paying any of their tax in any one of the four digital currencies supported by PayPal.

Residents can now pay for their income tax, withholding tax, severance tax, and business income tax via PayPal.  This means that residents can now make payments either in Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), or Bitcoin Cash (BCH).

After receiving the payments, PayPal then converts the sum to its fiat (US dollars) equivalent and then remits the sum into the state’s purse. 

The platform which allows users to store, withdraw and deposit a variety of digital currency, charges a service fee of 1% plus 1.83% of the tax amount for each of these transactions.

This development makes Colorado, with a crypto advocate in the person of Jared Polis as governor of the state, the first US State to adopt crypto for payments.

Governor Jared Polis who is also a foundational member of the Congressional Blockchain Caucus first shared the initiative to accept crypto payments in February.

With the price of digital currencies getting a severe hit in recent times, it remains to be seen if this is the right timing for the initiative and if it will affect the adoption rate by the residents. The king coin, Bitcoin, traded for $18,887 at the time of this writing. 

Governments adopt cryptocurrencies as a payment option

After the major adoption of crypto by The Central American country El Salvador, several States and countries have been encouraged to try their hands on the digital currency.

The British city of Portsmouth in partnership with PayPal has also embraced crypto payments as an option for residents to fulfill their Civic obligations.

Also, California’s Senator Sydney Kamlager earlier in the year presented a bill that will allow the acceptance of cryptocurrencies for certain types of payments.