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COLORADO WILL ALLOW RESIDENTS TO PAY TAXES WITH CRYPTO

Nick Marinoff · February 27, 2022 · 5:00 pm



Colorado has set forth a new law that will allow people to pay for taxes and
fees with cryptocurrency.


COLORADO SAYS “YES” TO CRYPTO PAYMENTS FOR TAX FEES

Governor Jared Polis announced the news late last week, commenting:

> In Colorado, we’ve been laying the groundwork to be a center of crypto and
> blockchain innovation for a number of years. We see it as a critical part of
> Colorado’s overall innovation ecosystem.



The initiative pushes forward the primary goals of bitcoin and its altcoin
cousins. All these assets – and many others like them – were initially designed
to serve as payment tools for goods and services. Crypto was built to knock
things like fiat, checks, and credit cards to the side, but unfortunately, this
has been a rather slow journey given the volatility that has come with many of
these assets.

The prices of cryptocurrencies tend to go up and down without notice. This has
caused many stores, businesses, and organizations to say “no” to crypto
payments, and to an extent, we can understand why. They fear losing profit.

Consider the following scenario: someone walks into a store and buys $50 worth
of merchandise with bitcoin. For one reason or another, the store does not
convert the BTC into fiat right away. About 24 hours go by, and during that
time, the price of bitcoin drops, causing that $50 to turn into $40. While the
customer gets to keep all they bought, the store has lost money in the end. Is
this a fair scenario? Not everyone thinks so… Especially business owners.

But with Colorado and other regions now allowing crypto payments for items like
taxes, it can be argued that the comfort level surrounding bitcoin and digital
assets is getting larger. Polis says Colorado has been impressed with blockchain
and crypto for some time. In fact, he commented that Colorado was one of the
first regions in America to implement blockchain for infrastructure purposes.

It looks like the state’s goodwill towards crypto is rubbing off on its
neighbors. Arizona and California, for example, have recently introduced bills
that if passed, would allow crypto to be used as a statewide payment tool. This
means you could use crypto not just to pay tax bills, but virtually anything
granted you reside in one of those states.


STATES ARE BECOMING LIKE EL SALVADOR

Both regions appear to be taking a page out of El Salvador’s book, which was the
first country in the world to dub bitcoin legal tender last summer. Bitcoin can
now be used in that nation along with fiat.

Governor Polis has allegedly been a longtime bitcoin fan. In 2014, he went so
far as to accept bitcoin and crypto donations for his run for the U.S. Congress.
He says he plans to have the state’s crypto program in place by early summer.

Tags: bitcoin, Colorado, Jared Polis
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