Jared Polis, Colorado’s governor recently announced that the state’s government will let residents use crypto to pay their taxes. This could happen as soon as the summer of 2022. He made this announcement in an interview with CNBC on February 15th. Any resident of Colorado and a crypto holder has the option of paying taxes with digital currency. The state will take the responsibility of conversion to hard currency. The intermediary who will handle such transactions has yet to be named.
As of now, crypto payments will be accepted only for state taxes. Once the government is ready, we will roll out payment plans for items such as driver’s licenses or even hunting licenses, said the governor. He also said that he was not worried about any potential price swings for crypto like ETH and BTC, since the state didn’t have plans to hold on to the currency. The funds would be converted immediately. Reasons to include crypto as part of the payment option were lowered transaction costs and to promote a new class of assets.
After getting voted into office in 2019, Polis signed the state’s Digital Token Act into law. A few lawmakers have said that they want to address potential uncertainty regarding the regulation of digital assets at the state level. They don’t want to wait for Congress to set up a regulatory framework. Many states are introducing legislation related to crypto adoption and other issues.