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Bitcoin: Colorado makes it official to pay taxes in cryptos

This is it, it’s official. Colorado has made good on its promise by granting its residents the right to pay their taxes with cryptocurrencies like Bitcoin.

Jared Polis, governor of Colorado since 2019, had announced in late February that paying taxes in cryptocurrencies would potentially be made possible soon.

Before anything else, it should be known that the governor is a former entrepreneur from the tech world. Passionate about new technologies and personally involved in the ecosystem, he keeps taking steps to promote the democratization and use of cryptos in the public sphere.

Thanks to his action, his proposal was definitely adopted.

Indeed, the American media reported that the right to pay taxes and related fees, for example with bitcoins or ethers, had just been formalized in the state of Colorado.

This makes Colorado the first state in the US to accept this form of payment for taxes.

Jared Polis interviewed by CNBC had imagined this possibility for the month of July/August 2022 “we expect that this summer, quite quickly, we will accept crypto-currencies for all our government taxes” and as it had been announced, the measure will not be effective before that date.

According to local media, Jared Polis welcomed the adoption. He calls it “the next logical step on the path to the digital state” and says he is proud to lead the effort to “create a strong and vibrant crypto ecosystem that puts Colorado at the forefront of digital innovation.”

His words clearly demonstrate his intention to explore new technologies and forms of currency even further, for the good of his state. Some have put forth that his goal seems to be to bring blockchain technology to various sectors of the local economy.

If, as always when it comes to a legal adoption of cryptos, the right to pay income tax with bitcoins, ether or other (for lack of more information) can only rejoice, it must be said that the U.S. Treasury will not hold these assets.

Indeed, in February Jared Polis had explained how it works: a Colorado resident pays with his bitcoins, which will be converted into fiat ($) by an intermediary, before arriving in the coffers of the American tax authorities. In reality, the taxman is paid in dollars but the taxpayer has paid with his bitcoins or his ethers.

Once again this news shows us that the interest for cryptos is growing. Other states are also in agreement on this experiment (Ohio, Texas, Florida, Wyoming, New York). For the time being, Bitcoin remains the most widely accepted cryptocurrency worldwide.


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