As of this week, Colorado residents can now pay their taxes in cryptocurrencies through PayPal. This makes Colorado the first state in the US to adopt this payment method. According to the governor, other measures in this direction are expected.
Cryptocurrencies to pay taxes in Colorado
As of this week, residents of Colorado, USA, will now be able to pay their taxes using cryptocurrencies. According to the dedicated payment portal on the state’s website, interested parties will have to exclusively use PayPal to use this payment method.
For the time being, this new possibility is only open to individuals, for a fixed fee of $1 plus a 1.83% fee on the total amount paid.
According to the Colorado payment portal, individuals wishing to pay their taxes in cryptocurrencies will have to pay the amount due using a single cryptocurrency.
It should be noted that the receiving agency will not keep the cryptocurrencies as such, but will be responsible for converting them directly into dollars.
With this decision, the implementation of which was already announced in February by Democratic Governor Jared Polis, Colorado becomes the first state in the United States to accept cryptocurrencies as a means of payment for taxpayers.
In the same statement, Polis said that this was just the first step towards wider adoption of cryptocurrencies. Indeed, the senator would like to see driving licences and hunting licenses also made available through this type of asset.
Colorado, the future crypto capital of the United States
Thanks to its governor, the state of Colorado could well embark on a more global adoption of cryptocurrencies. Indeed, Jared Polis had also shown interest in non-fungible tokens (NFTs) during his campaign.
NFTs are unique, non-interchangeable tokens that have their own properties and circulate on the blockchain. If you want to know more about this, we have written an explanatory page about it.
Jared Polis had launched a series of NFTs available for just over $50 to thank his donors. These NFTs, deployed on the Flow blockchain, included access to certain events.
I’m beyond excited to announce my campaign is dropping an exclusive collection of NFT’s!
I’ve always supported emerging technology and I’m looking forward to being among the first to implement NFT’s into campaigns. https://t.co/RS15wG8ox4
– Jared Polis (@PolisForCO) June 13, 2022
Let’s also note that Jared Polis co-founded the Congressional Blockchain Caucus alongside Republican Mick Mulvaney in 2016, a committee made up of U.S. representatives to study blockchain technology and encourage its adoption.
Colorado is not the first US state to move towards cryptocurrency payments. Ohio had notably tried it in 2018, before abandoning the idea a year later due to legal complications.
Other states, such as Illinois, Arizona or Georgia, have also considered the idea of accepting tax payments in cryptocurrencies.
