Colorado will become the first state in the US to acknowledge cryptos for state tax and fee payments. Citizens of the state will be able to pay their income taxes in Ethereum and Bitcoin beginning from as early as June. Governor Jared Polis declared the same a few days ago. To reduce difficulties with volatility linked with cryptos, the state will accept payments in the digital assets and then convert them into equivalent dollars amount in real-time before depositing them into the treasury of the state. The governor tweeted that it is kind of like credit card payments, with the bonus that there are no returned payments.
Polis, in another post on Instagram, said that for years, the authorities have been developing the infrastructure in Colorado to make the state a center of blockchain and crypto innovation. He stated and added that from this summer the state will accept cryptos for fee payments and state tax. They will consider it as an important part of the state’s overall innovation ecosystem.
He stated that they are getting a payment provider to accept cryptocurrency equivalent and deposit the dollars into Colorado’s treasury for that amount. This isn’t Polis’s first foray into the crypto domain. During his 2014 race for the US Congress, he had accepted Bitcoin for campaign donations.