OHIO PIONEERS CRYPTOCURRENCY STATE TAX PAYMENTS
So Ohio, of all states, is set to be the first to allow businesses to make tax payments with the cryptocurrency Bitcoin. The new initiative pioneers a never seen before option and may change taxes for everyone soon. This is huge news. The Wall Street Journal broke the news over the weekend. Their reporting details how Ohio businesses can now register at OhioCrypto.com and pay state taxes, as of this week! Ohio launched the new program under the leadership of Ohio Treasurer Josh Mandel. The state will use a third-party service, BitPay, to process Bitcoin payments to Ohio. Everything will change after this. Or has it already?
BITCOIN NOW A STATE RESOURCE, NOT JUST DARK MONEY CONDUIT
If Mandel’s idea works, Ohio will forever be the first state to adopt the official use of blockchain technology. But this could be great news for Bitcoin as well. Because this offers an instant legitimacy that the cryptocurrency has lacked in the broader market. Bitcoin has been a huge success across the world as a tradable asset. But many associate it as a method for criminal transactions. Ohio’s adoption of Bitcoin as a business tax payment method will make a huge splash. But how fast those waves move and how big they will be, remain to be seen. But we will all feel them, soon. Ohio makes a splash, indeed.
BITCOIN CAN BE USED BY ANY BUSINESS OPERATING IN OHIO
Yet this doesn’t mean Bitcoin suddenly has legal status. But it does now have a certain acceptance. But especially as Ohio businesses can use it as an official liquid asset, at least to pay state taxes. For anyone who’s only associated Bitcoin with criminal enterprises, this changes the game. Actually, the game changed already. Ohio businesses will be able to pay 23 different taxes thru the portal. These include withholding tax, sales tax, tobacco product tax, etc. Even businesses that only operate in Ohio but are headquartered elsewhere can use Bitcoin as a tax payment option. This could make paying taxes easy. All year long. At any time. That’s a win.
BITCOIN TODAY, FEDERAL TAXES TOMORROW?
Last, but not least, Ohio plans on adding other cryptocurrency options to pay state taxes as well. That means competition. That is almost always a good thing. It gives tax payers more options. It also gives Ohio more options. Or at least it will. But also, more businesses will invest in virtual currency like Bitcoin. So just think what happens when we can all pay taxes like this. And what about Federal taxes? We’ll just have to wait. A little longer… Maybe? But for citizens, will there be pitfalls? If you pay taxes with Bitcoin, will you get audited? Only time will tell. We’ll see how those pioneers fare. But for now, consider me surprised. I never would have predicted this. But most especially, Ohio? It’s kind of crazy. Next stop, TurboTax?