Bitcoin adoption milestone achieved in tax payments with cryptocurrency
Bitcoin adoption milestone – The State of Ohio has just started accepting Bitcoins for tax payments officially via ohioCrypto.com, and the organization plans on adding more cryptocurrencies in the months to come. The solution was implemented by the treasure of Ohio, Josh Mandel, as this has been the first time in history that a state government has accepted Bitcoins for taxes directly.
According to ohiocrypto.com, this was a great move because of all the benefits the processes brings, like the fast, transparent, secure, easy and real-time tracking of the payments. The payments can be done through a mobile device with negligible fees. The tax payment implementation of the Bitcoin Blockchain is aimed at family shops, businesses together with major corporations, and is not directed to individual taxpayers. This can be seen as a bitcoin adoption milestone as acceptance in daily payments is something most bitcoin holders want to see.
People looking for more information can get answers at ohiocrypto.com in FAQ section, as this section was created because of the treasure stating that:
“Treasure Mandel believes in leveraging cutting-edge technology to provide Ohioans more options and ease while interfacing with state governement. The Treasurer’s office is also working to help make Ohio a national leader in Blockchain technology… Treasurer Mandel has a proven record of levergaing technology to change how citiziens interact with governement.”
At the moment there are a total of 23 types of taxes that can be paid with Bitcoins, which includes more than 910 wireless, cigarettes, and tobacco products, non-resident motor vehicles and more. Ohio businesses have to pay a wide variety of taxes that can now be made through the payment of cryptocurrencies. Other official institutions that can be paid in Bitcoin in Ohio businesses are:
- Commercial activities(CAT)
- Financial Institutions(FIT)
- Interest on lawyer trust accounts(IOLTA)
- The International fuel tax agreement (IFTA)
- Kilowatt hours
- Motor vehicle fuel(MVFT)
- Natural gas distribution(Mcf)
- Pass-thru entity tax (PTE)
- Petroleum activities (PAT)
- Sales tax
- Public utility tax
- Streamlined sales tax(SST)
- Premium insurance tax
- Withholding tax
After the payments are done, it will be converted to fiat via Bitpay in order to avoid market volatility. The treasurer of Ohio will not be holding any bitcoins, as ohiocrypto.com is already compatible with bitcoin wallets. Users will be able to scan a QR code or use a bitcoin address in order to receive and complete the payment.
Bitcoin is seen as property by the Internal Revenue Service(IRS), which is a security from the Securities and Exchange Commission(SEC) together with commodities by the CFTC. The Ohio Treasurer’s Office has officially recognized Bitcoin as currency with the launch of ohiocrypto.com, and the crypto can now be used in these categories as well.
What do you think of taxes being paid in cryptocurrencies? Do you think we have yet reached another Bitcoin adoption milestone? Please feel free to leave your comments down below.