pay taxes with bitcoin

As of today, Ohio becomes the first state in the US to allow businesses to pay taxes with bitcoin. Ohio edges out Arizona, Illinois, and Georgia which have seen similar initiatives fail to pass state legislatures.

The move is a stamp of legitimacy from the US authorities for a cryptocurrency that has, until recently, been derided as a mode of payment only useful for criminals, speculators, and money launderers.

We should point out that the government itself won’t directly accept or process bitcoin. It will be converted through a third-party payment provider, Bitpay, and the taxes will still technically be paid in dollars.

Individual Taxes to Follow

Businesses operating in Ohio will be the first to benefit from the new initiative. The state of Ohio has launched a new website, ohiocrypto.com where businesses can register and begin the tax payment process with bitcoin.

The site lists 23 taxes that are currently payable in cryptocurrency, including employee withholding taxes and sales taxes.

While it’s not yet possible fo individual filers to pay with bitcoin, the state of Ohio is working on it, as well as the potential to accept other cryptocurrencies.

“I do see [bitcoin] as a legitimate form of currency,”

Ohio Treasurer Josh Mandel is one of the few government voices to publicly champion cryptocurrencies. Speaking to the Wall Street Journal (paywall), he said “I do see [bitcoin] as a legitimate form of currency,” granting it some authority in the eyes of government.

Back in August, Ohio passed a law that legally recognized blockchain data, while Ohio speaker Ryan Smith confirmed Ohio’s grand plans: “because this is so new and this is just beginning to take shape, we can position Ohio out front.”

You might also be interested in: A Giant Blockchain Town is Being Built in the Nevada Desert

No Legal Status, Yet

It’s important to note the move does not give bitcoin any legal status. In order to accept the payments, Ohio will use a third-party payment provider, BitPay, to convert bitcoin to US dollars. In other words, the state will not process or hold bitcoin itself. The taxes are still technically paid in dollars, just routed through a third-party.

While this is a stamp of approval for cryptocurrencies, it does not mean the government accepts or processes bitcoin directly.

Other States to Follow?

Ohio has kicked down the door and other states may soon follow suit. The Arizona Senate approved a similar bill earlier this year, but it was knocked back by the House of Representatives.

Representatives in Illinois also submitted a proposal to accept bitcoin back in February, while two state senators in Georgia proposed a similar bill in early 2018.

Learned something new in this article? Subscribe to the Block Explorer newsletter.

coin renders

Use our news to inform cryptocurrency trading decisions, stay up-to-date on happenings in the industry, and more!

Ledger Wallet Desktop Edition Launching on July 9
Operation Prowli: GuardiCore Uncovers Large Scale Cryptojacking
GuardiCore, a cloud-based security provider, has uncovered a large-scale attack on vulnerable servers. BlockExplorer reported on the story as it came to light, “Codenamed Operation Prowli, the attack leverages various exploits to redirect web traffic, and to install cryptocurrency mining software on its targets”.

One Firm Is Way Ahead of Wall Street on Bitcoin
The New York Times reports, ” The financial firm, Susquehanna International Group in Bala Cynwyd, Pa., just outside Philadelphia, is one of the largest players in trading traditional investments like stocks, options and exchange traded funds, or E.T.F.s. Over the last two years, the privately owned company has also built up a trading desk of around a dozen people that buys and sells millions of dollars’ worth of Bitcoin and other virtual or cryptocurrencies in private deals.”

Block Explorer’s Tony Spilotro reports, “Cold storage through a hardware wallet such as the Ledger Nano S is among the safest, most secure, and widely recommended way to store crypto assets. However, using a hardware wallet isn’t always straightforward: not all coins are supported, user interfaces are clunky, and users are often required to use multiple apps to interact with different blockchains.”

Lobbyists Cash-in On Bitcoin
In this Politico money podcast, reporters examine how lobbyists cash in on bitcoin.

Image courtesy of Carty Sewill, http://cartyisme.com/

coin renders

Use our news to inform cryptocurrency trading decisions, stay up-to-date on happenings in the industry, and more!

Former Obama Aide Targeted by Anti-Crypto Political Ad for Accepting Bitcoin Donations
Brian Forde, a California Democrat running for the US House of Representatives, is accepting accepting campaign donations in Bitcoin. Vice’s Motherboard reports that Forde, “was a senior advisor to the Obama administration who wrote the White House memo on cryptocurrency. Now his congressional campaign is under attack by his opponent for accepting Bitcoin donations.”

MIT Researchers Testing A Smart Contract-Powered Bitcoin Lightning Network
MIT is exploring the application of smart contracts on Bitcoin Lightening Network to see if it can handle millions of transactions, and with a greater degree of complexity.

PayPal: We’ll ‘Certainly Support’ Bitcoin If It Becomes ‘Better Currency’
PayPal’s CFO, John Rainey, told CNBC cthat volatility was the reason PayPal does not currently “see a lot of interest” from its merchants regarding cryptocurrency acceptance. However, he signaled PayPal was not giving up on Bitcoin. “Right now, we don’t see a lot of interest from our merchants,” Rainey went on to say. “But if it’s something that stabilizes in the future and is a better currency, then we’ll certainly support that.”

Introducing Monero’s Ethereum-Killer: Tari
A group of industry experts are building a brand new protocol built on top of the Monero network that will enable token creation.


Image courtesy of Carty Sewill, http://cartyisme.com/

coin renders

Use our news to inform cryptocurrency trading decisions, stay up-to-date on happenings in the industry, and more!

Twitter CEO Jack Dorsey: Bitcoin Should Be Native Currency of the Internet
Twitter and Square CEO Jack Dorsey stood on stage at the Consensus conference, saying Bitcoin should be the cryptocurrency of the internet.

Adware Bundle Makes Chrome Invisible to Launch Cryptojacking Attacks
ZDNet reports, “CPU usage spikes up to 80 percent on infected machines.”

The SEC Launches Phony ICO Site to Promote Scam Awareness
In a bid to raise awareness of potential investment scams in the cryptocurrency space, BlockExplorer’s Tony Spilotro says the U.S. Securities and Exchange Commission’s (SEC) Office of Investor Education and Advocacy have launched a fake website posing as a luxury travel firm kicking off the pre-sale portion of their initial coin offering (ICO).

Largest Bank in the Philippines Showcases Bitcoin Mining Equipment
The cryptocurrency world is buzzing upon the news The Philippines largest bank is dabbling in Bitcoin. NewsBTC reports, “UnionBank recently demonstrated its cryptocurrency miners at a business conference. That is an interesting development, considering how the world’s leading cryptocurrency is a legal tender in the country.”

PwC China Survey Finds That Most Companies Prefer to Investigate Blockchain Internally
Rebecca Campbell of BlockExplorer reports, “A joint survey by PwC and VeChain has found that most enterprises prefer to setup their own in-house research and development (R&D) teams to investigate the blockchain.”

Image courtesy of Carty Sewill, http://cartyisme.com/

coin renders

Use our news to inform cryptocurrency trading decisions, stay up-to-date on happenings in the industry, and more!

Shyft Signs MOU with the Government of Bermuda, Pledges to Invest $10M
Earlier today at Consensus, the Government of Bermuda signed a Memorandum of Understanding (MOU) with Shyft, a blockchain KYC/AML solution. This partnership will build out the island’s regulatory framework and reinforce them as the example to nation states trying to adopt regulation themselves.

Amazon Partners with Start-up Kaleido to Make it Easier for Customers to put Their Services on Blockchain
The tech giant is moving into blockchain with a new partnership with Kaleido, a start-up was born out of blockchain incubator Consensys. CNBC reports, “The company is aiming to give AWS customers an “easy button” to get into the same technology that underpins bitcoin”.

St. Louis Fed President Suggests Bitcoin Could Emerge As A ‘Threat’ To US Dollar In The Future
A story from CoinTelegraph states “A top US policy maker made mostly positive remarks about Bitcoin, also not ruling it out as a potential “threat” to the US dollar, in an interview with CNBC Monday, May 14.” St. Louis Fed president James Bullard stated that crypto is “facilitating trade that would not otherwise occur. Some of that’s illegal, but some of that is avoiding costs that would otherwise be there.”

Tax Collector in Florida Becomes First Government Agency to Accept Bitcoin
WeTalkCoins reports, “a tax collector from Florida announced that its office will start accepting Bitcoin (BTC), and Bitcoin Cash (BCH), using BitPay. The agency will begin working with these currencies during this summer.”

GoTenna Launches a Bitcoin Wallet That Works Without the Internet
New York-based startup goTenna is partnering with Samourai Wallet to launch an Android app that allows users to send bitcoin payments without an internet connection. “Announced Monday,” Coindesk reports, “the txTenna app will enable users to sync up their mobile with a goTenna device, which costs $179 per pair, then toggle the wallet app’s settings to transact offline and send the bitcoin.”

Image courtesy of Carty Sewill, http://cartyisme.com/