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Colorado, in the U.S., added cryptocurrencies to the electronic payment options for state taxes, becoming the first state in the country to do so.
- Colorado accepts crypto for tax payments.
- First U.S. state to adopt the option.
- Citizens can pay via PayPal.
The state of Colorado, located in the western region of the United States, has begun accepting cryptocurrencies for the payment of state taxes.
Colorado Gov. Jared Polis announced the measure Tuesday during the “ Denver Startup Week “, as reported by the media Axios Denver . As a result, residents of that state can now leverage money that a trader borrows from a brokerage, enabling them to gain far greater exposure to a position than what their capital allows. their balances in digital currencies like Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. for the payment of your tax obligations.
The option is available for individual income tax, corporate income tax, sales and use tax, withholding tax, severance tax and excise tax on fuel, according to the report.
The Colorado Department of Revenue added the new mechanism to its electronic payment options, according to its web page whose listing the addition of an asset or an asset pair to an exchange. now includes “ cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. The “digital currencies” are available alongside the debit and credit card options. As can be seen in the state payment portal, payments with digital currencies can be made through the application PayPal .
Only the personal accounts of PayPal can take advantage of the cryptocurrency payment option, and a fee of an additional USD$1 plus 1.83% of the payment amount will be included, details the web portal. It adds that the user must have the total value of their tax bill in a single cryptocurrency in their Cryptocurrency Center at PayPal .
First state in the U.S. to incorporate the option a contract giving the buyer the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price.
Colorado has long a situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. been a crypto-friendly state.
In 2021, the governor had already stated during the conference Consensus consensus is achieved when all participants of the network agree on the order and content of the blocks in the blockchain. your wish to make Colorado the first state in the U.S. to add digital assets as a payment option for taxes. Polis reiterated these plans in February of this year, when he said in an interview for CoinDesk TV that the option would be added for “ consumer convenience”. this same 2022.
Making good on its promise, Polis’ announcement today makes Colorado the first U.S. state to accept cryptocurrencies for state tax payments, as highlighted by Bitcoin Magazine The governorate, however, has will not maintain revenues in digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currencies because PayPal will be responsible for settling payments in U.S. dollars.
On the other hand, other jurisdictions in the country, including the City of Miami, have also moved in this direction.
The mayor of Miami and Miami Bitcoin Francis Suarez has been working to boost the adoption of digital assets in the city as part of a broader strategy to attract startups and turn Miami into a hub for tech innovation. Miami has launched its own cryptocurrency, and most recently a NFT non-fungible tokens (NFTs) are cryptocurrencies that do not possess the property of fungibility. collection .
Similarly, the strategy could convert Colorado an attractive hub for crypto industry investors and entrepreneurs . Polis has also been sympathetic to the new asset class; he accepts campaign contributions in cryptocurrencies and is raising funds for his re-election campaign by selling NFT, as he adds Axios.
It’s questionable whether the new option for paying taxes will have traction among Coloradans; especially amid falling prices, a factor that is likely to discourage merchants from dumping a collective market sell-off that occurs when large quantities of a particular cryptocurrency are sold in a short period of time. their coins, as noted by Bitcoin Magazine . On the other hand, there is also the limitation that this option is only available with PayPal at least initially.
In February, Polis had hinted that the state was looking to partner with companies in the cryptocurrency industry to help it process transactions. It is unknown whether more channels for paying taxes with cryptocurrencies will be added in the future, or whether the option will even be extended to paying for other state services, something the governor had also previously hinted at.
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Article by Hannah Estefania Perez / DiarioBitcoin
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