The cryptocurrency space is advancing fast. A state in the USA, Colorado, now accepts Bitcoin as a tax payment. Even though some states are skeptical about cryptocurrency, it is inspiring to see some going all in. For a state to accept Bitcoin as tax payment, it must be a step ahead. As other states worry about cryptocurrency regulation and taxation, Colorado decided to go in and buy Bitcoin as a tax payment form.
As a citizen in Colorado, you can use PayPal to pay taxes. Colorado will charge additional fees for using the payment method. You can only use personal accounts and not business accounts. The cost is $1.00 plus 1.83% of the payment amount. Additionally, miner/gas fees or PayPal purchase fees may also apply. PayPal currently supports Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash ($BCH).
Colorado’s Governor Jared Polis Roots for Crypto
Earlier this year, Colorado’s Governor, Jared Polis, had shared plans to accept Bitcoin as a payment method. He said that Colorado would affect the plans by the end of summer. You can pay business income tax, individual income tax, sales and use tax, excise fuel tax, and withholding tax. According to Polis, this decision to use Bitcoin as tax payment is part of a larger vision to accept blockchain technology in the state.
The governor also accepts campaign contributions in the form of fundraising. He sells NFTs for $52.80 each to fund his re-election campaign. Polis has sold about 175 NFTs since June. The digital payments system, PayPal, has recently taken to cryptocurrency. The company’s vice president said that they are looking into the possibility of integrating all cryptocurrency services. In PayPal, you can now purchase, hold, trade, and transfer different cryptocurrency assets. The only downside is that you have to pay charges for each transaction.
Digital Payments and Cryptocurrency Adoption
Nations and States are continually embracing cryptocurrency. Recently, Mastercard partnered with Eurocoinpay to launch a cryptocurrency credit card in Spain. Eurocoinpay is a significant cryptocurrency exchange in Spain. Visa is also embracing cryptocurrency. Digital payment systems are diving into cryptocurrency. MasterCard and Paypal even have sections set apart to handle cryptocurrency. As an investor, the companies can help you transition from fiat to cryptocurrency because it can be a lot of work. This will encourage small financial institutions to adopt cryptocurrency. According to Visa’s official website,
“Crypto is reaching extraordinary levels of adoption and investment, opening a world of possibilities for businesses, governments, and consumers… Visa’s crypto solutions and capabilities can help you evaluate and capitalize on the growing interest in crypto. All supported by the trusted Visa brand.”
Visa has a Fintech Fast Track that enables crypto holders to facilitate transactions quickly through Visa. Mastercard also has an option that allows you to monitor cryptocurrency transactions and prevent fraud. This is only the beginning; 2022 will be a remarkable year for cryptocurrency adoption.