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Ohio will soon be the first state to accept Bitcoin for taxes

Nov 26, 2018, 00:51 IST

A Bitcoin logo is seen on a cryptocurrency ATM in Santa MonicaThomson Reuters

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  • Ohio is becoming the first US state to accept the Bitcoin cryptocurrency for business tax payments.
  • Ohio politicians have been open about their desire to be on the forefront of blockchain technology adoption.
  • It's good news for Bitcoin and cryptocurrency among a stream of recent negative news.

The state of Ohio will accept Bitcoin for Ohio business tax payments beginning this week - a first for the US, according to a report from The Wall Street Journal.

Bitcoin has struggled to become a widespread form of payment, but Ohio Treasurer Josh Mandel says that Bitcoin for business tax payments has several benefits on the OhioCrypto.com website, like being "quick and easy," trackable, secure, transparent, incurs low fees, and allows taxes to be paid via mobile devices.

There are 23 taxes that can be paid with Bitcoin, including sales tax and withholdings taxes. For a full list of eligible taxes, check OhioCrypto.com's FAQ page.

Ohio Businesses will be able to pay these eligible taxes via the OhioCrypto.com site. The Ohio Treasury is looking to add more accepted cryptocurrencies in the future.

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Read more: Even Congress is jumping on the blockchain bandwagon - and IBM is urging it on

OhioCrypto.com says that the payment option is part of an initiative to integrate blockchain technology into parts of Ohio's government: "Treasurer Mandel believes in leveraging cutting-edge technology to provide Ohioans more options and ease while interfacing with state government. The Treasurer's office is also working to help make Ohio a national leader in blockchain technology."

In August, Ohio Speaker Ryan Smith held a press conference that included politicians, business leaders, and academics to blockchain's potential in Ohio. "Because this is so new and this is just beginning to take shape, we can position Ohio out front," Smith said. The same month, Ohio passed a law that officially recognized blockchain data as a form of electronic record.

Among news of crashing Bitcoin prices and general lack of adoption, Ohio's acceptance of Bitcoin for business tax payments is boon for cryptocurrency. Still, it's only an option and there's no telling yet how successful the program will be.

NOW WATCH: Principal Global Investors CEO: Bitcoin lacks fundamental value and it won't replace gold

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