Crypto Stories

Accepting Bitcoin for State Taxes Is Now Legal in Colorado

By Gitumani Talukdar
Published February 19, 2022 Updated February 19, 2022

Governor Jared Polis anticipates that his state will embrace bitcoin and other cryptocurrencies for use in taxation by the summer. In an interview with CNBC on Tuesday, Colorado Governor Jared Polis indicated that the state would soon begin accepting bitcoin as a form of payment for taxes.

According to Gov. Jared Polis, all of the state’s tax-related functions will be able to take cryptocurrency by the summer. As a follow-up, Polis said the state would allow the use of bitcoin and other cryptocurrencies for state fees in the months after taxes go into effect. Colorado residents may soon be able to pay for a driver’s license using bitcoin.

Jared Polis Positive About Accepting Cryptocurrencies

He described his state as “extremely forward-looking and inventive.” Polis said that the state would promptly convert any cryptocurrencies received as payment into US dollars to meet its responsibilities and adhere to its present accounting rules.

‘All of our spending and our budget approved by lawmakers are in dollars, so when we speak about taking cryptocurrency for payments, they would be transformed back into dollars for our reasons,’ Polis added. As defined by Polis, a third-party organization would serve as a mediator between the taxpayer and the government, allowing the exchange of bitcoin and fiat cash as necessary.

Key Responsibility Towards Privacy 

Polis also said that he believes the government has a “key responsibility” to play in preserving the privacy of its residents. States in the United States are scrambling to pass bitcoin-friendly laws to become a center of innovation in the industry by luring companies and entrepreneurs to the area to generate employment and boost the local economy. Monday, the state of New Hampshire formed a Bitcoin and Cryptocurrency Commission to explore how the state’s economy may be bolstered by new technology. The state of Tennessee wants to acquire bitcoin, while Missouri is considering making it tax-free. While some states consider making bitcoin legal cash, Arizona is going further.