Ohio is now the first state in the US where businesses can make tax payments in cryptocurrency. According to a report by The Wall Street Journal, Ohio has launched an initiative called OhioCrypto.com that allows businesses to spend crypto on taxes. Monday will mark the first day when Ohio businesses can sign up and start making crypto payments through BitPay.
The announcement comes at a time when the world’s largest cryptocurrency is enduring a sustained bear market with Bitcoin falling as low as $3,622 from a high of $5,604 within the past seven days, according to data on WorldCoinIndex. While proponents say that Bitcoin will make a comeback, critics claim that the blockchain-based payment network has failed to catch on with merchants and major retailers.
By allowing business owners to pay taxes in crypto, Ohio legislators are making a major push to support Bitcoin and other altcoins as viable forms of money.
BitPay, an Atlanta-based startup founded in 2011, will facilitate the transactions by allowing businesses to pay in Bitcoin, and then instantly convert those payments into US dollars. The Ohio state government will then accept the payments, settled in US dollars. One of BitPay’s primary roles will be to minimize the risk of Bitcoin’s extreme volatility – an obstacle that has prevented merchants from accepting Bitcoin as a form of payment.
The initiative was spearheaded by Ohio state treasurer Josh Mandel. According to the WSJ report, Mandel says, “I do see [Bitcoin] as a legitimate form of currency.”