- Colorado will be the first US state to accept cryptoassets for tax payments, according to a statement by Governor Jared Polis.
In a new interview with CNBC, the Governor Police stated that citizens of the State of Colorado will be able to use digital assets to pay their taxes against the state from mid-2022.
The police also said that the state intends to accept crypto payments for other government-related fees as well.
“By this summer, we hope to adopt crypto for all liability related to state taxes very soon, and then plan to roll it out to the entire state government for simple things like driving licenses or hunting licenses.”
While the state will accept cryptocurrencies for payments, Police say the government has no intention of holding cryptocurrencies because they are so volatile. Any crypto received as payment by the state will be converted to USD in real time.
“We cannot afford exposure to a market where securities, including cryptocurrencies, are volatile.
Our expenses are still in dollars. You never know what the future will bring, but all our spending is in dollars, our budget has been approved in dollars by the legislature, so when we talk about accepting crypto for payments, we mean they will be converted back to dollars for our purposes.”
The Police, which first came up with the idea that Colorado residents should be able to pay their taxes in crypto last year, says some cities in the state could follow in the footsteps of Miami and New York and create their own CityCoins.
“We have Senator Chris Hanson, a major state senator pursuing a digital token bill that would effectively allow the use of state-created digital tokens for state reserve purposes.”