- Coloradans can now use cryptocurrencies to pay for driver’s licenses and vehicle registration renewals online.
- Payments in cryptocurrency for DMV services will be conducted through PayPal, with a service fee of $1 + 1.83% of the total.
- The DMV’s decision to accept cryptocurrency payments is intended to provide creative and convenient service delivery.
Colorado residents who want to renew their driver’s license or vehicle registration online now have the option to pay with cryptocurrency.
This means Coloradans can now pay for vehicle service renewals online using digital currency via payment giant PayPal.
Colorado Now Accepting Cryptocurrency Payments for Convenience
According to the Colorado Division of Motor Vehicles (DMV), crypto payers will be transferred to PayPal to complete the transaction. Coloradans can renew their driver’s license, identity card, vehicle registration, and other motor vehicle services online with this payment method.
However, using cryptocurrency to make payments will attract fees. “There is a service fee of $1 plus 1.83% of the DMV total for paying in cryptocurrency. Paypal fees may apply as well,” the press release noted, adding.
“A sufficient amount of cryptocurrency to cover the transaction and fees is then converted to dollars and remitted to the DMV to complete the online transaction.”
Meanwhile, Visa and Mastercard have very comparable charge structures. For instance, Visa charges an interchange fee ranging from 1.15% + $0.05 to 2.40% + $0.10. On the other hand, Mastercard charges 1.15% + $0.05 to 2.50% + $0.10.
Advocating for Adoption Recent Times
Senior Director Electra Bustle of the DMV emphasizes convenience as a primary reason for accepting crypto payments from clients. “This new online cryptocurrency payment option is yet another way that the DMV is providing innovative and convenient service delivery to our customers,” Bustle explained.
PayPal has recently been actively promoting cryptocurrency adoption. PayPal accepts Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC) at the moment.
PayPal announced the launch of its stablecoin, PYUSD, on August 7. The US dollar, short-term treasuries, and comparable cash equivalents will back the stablecoin.
PayPal’s US clients will be the first to receive PYUSD. They will be able to send the ERC-20 stablecoin to other wallets, conduct peer-to-peer transactions, and convert it into other cryptocurrencies supported by PayPal. PayPal announced about $1 billion in crypto holdings in its Q2 2022 earnings report on May 9. PayPal has $499 million in Bitcoin (BTC), $362 million in Ethereum (ETH), and $82 million in Bitcoin Cash (BCH) and Litecoin (LTC), according to the research. Its holdings have increased by more than 30% since the fourth quarter of 2022.
