This week, Ohio became the first US state to accept Bitcoin as a form of tax payment for businesses, making it the first state in the United States. UU That establishes this payment method.
The office where the Ohio treasurer is located said that work is being done to help the state become a national leader in the blockchain platform. This can be used for many different types of processes that may exist, from tracking the supply chain to the point of creating a mesh network for every IoT device.
“We are doing this work to provide all Ohio residents with more options and greater ease to pay their taxes, in the same way, to project the leadership that Ohio has in the adoption of blockchain technology,” said the treasurer of Ohio, Josh Mandel, in a statement given in previous days.
Payments will only be moved through the BitPay blockchain e-book, which offers real-time tracking; Payments will be processed in approximately one to three days. A “minimum fee” will be charged to confirm the transactions and anyone can see all the transactions in the blockchain.
Bitcoin is currently the only cryptocurrency that can be used for payment at OhioCrypto.com, yet the Treasurer’s office said that it plans to add other cryptocurrencies to this system in the future.
Companies located in Ohio may also use credit and debit, checks or money orders to pay taxes. The execution of payment by cryptocurrency through OhioCrypto.com includes 23 different tax payments.
“With the BitPay platform, Ohio can take advantage of the blockchain technology and benefit from the reduced risk, as well as allow fast and easy payments from any device, anywhere in the world and receive payments,” said Stephen Pair, co-founder and CEO BitPay, in a statement.
To use the payment service with Bitcoin, companies have to register online, enter all their tax payment information and then use an exclusive cryptocurrency wallet to pay the bill with Bitcoin.
The payments will then be processed by BitPay, which immediately converts the bitcoins into US dollars before depositing the amount to a state account.
Ohio is protected against market volatility.
The price of Bitcoin has decreased its value from almost $20,000 to approximately $3,600
The Treasurer’s Office said in a statement that the state and all taxpayers would be protected against market volatility since the BitPay network sets the exchange rate for a time window of 15 minutes or more for each transaction once a commercial taxpayer begins to execute his payment at OhioCrypto.com.
BitPay then assumes the risk of any variation in the market during the time window that has been assigned.
Lawmakers located in Arizona, Georgia, and Illinois have presented their legislative proposals to use Bitcoin as a form of payment to the governments of their states, but those efforts were not taken into account or vetoed.
In 2016, New Hampshire legislators rejected a bill that would have allowed tax payments for all residents. In 2015, the Utah Senate passed a bill similar to the one proposed above.
The bill made by Utah included a brief mention on Overstock.com since the online retailer accepts Bitcoins for payments and has invested heavily in new companies that today develop the platform.
Who wants to do this?
When pressed to obtain details on how many companies would want to pay their taxes in Bitcoin, the Treasurer’s Office said that this information would not be available for several months.
Supporting these tax payment options is an admirable goal, yet the method by which the Treasurer’s Office accepts Bitcoin does not make sense.
Well, there is the talk of a more complicated, expensive, potentially risky and unnecessary process, which may not be desirable in the first place. Even so, this objective remains in development.
For many, it can be an advantage or a disadvantage, as it can be a benefit, a more natural way to execute payments of our companies in the same way that it can be a loss of investment and time.
Not everyone thinks in the same way everyone is free to believe what they want, but this breakthrough that Ohio has made can be the beginning of new stages to the state.