Bitcoin has been around for years. However, it failed to become a popular method of payment. But Ohio Treasurer Josh Mandel stated that Bitcoin as a method of tax payment offers a lot of benefits. On OhioCrypto.com, he said that Bitcoin payment is quick and easy. It also comes with low fees. Plus, it is secure and transparent.
Businesses in Ohio can choose to pay in Bitcoin starting Monday. It makes Ohio the first state to accept cryptocurrency. Business owners who want to use this method of payment should register through OhioCrypto.com. The taxes to be paid could be anything, from employee withholding taxes to sales taxes.
This program is designed to be an indication of Ohio’s ambition to reinvent itself to become more tech-friendly.
“Treasurer Mandel believes in leveraging cutting-edge technology to provide Ohioans more options and ease while interfacing with state government. The Treasurer’s office is also working to help make Ohio a national leader in blockchain technology.”
During a press conference in August, Ohio Speaker Ryan Smith stated that Bitcoin payment is still new but Ohio can position itself out front. Then, in the same month, the state passed a law recognizing blockchain data as an electronic record.
However, Bitcoin’s value is beaten up again. On Saturday evening, it crashed through $4,000. The fall was as low as 14% with rates going $3,700 on some exchanges.
In over a year, Bitcoin’s value is at its lowest point. It drops around 80% from its highs.
It is the second major fall in cryptocurrency prices this week. But it is difficult to determine a catalyst for the move. In a report earlier this week, two groups of developers are fighting for supremacy. Currently, these two groups are mining blocks on their blockchains to set up control. They are also said to have a huge amount of Bitcoin reserves that they can use to finance their operations.
Despite the major fall, Ohio will continue its Bitcoin program, i.e. to accept Bitcoin as a form of tax payment. However, this initiative will not give Bitcoin its legal status.
But it is not only Ohio that considers this program. In fact, Arizona, Illinois, and Georgia considered similar initiatives. Unfortunately, they never got past their respective legislatures.
Who is going to handle the payment?
Ohio is collaborating with Bitpay, a cryptocurrency payment startup, to handle its taxpayers’ payment. This startup will convert Bitcoin to dollars.
However, some people are questioning how this form of payment works considering Bitcoin’s volatile nature. This digital token can be sent electronically from peer to peer. But it lacks physical backing. It is also not controlled by a government or a financial institution, making it a decentralized currency.
Bitcoin remains the most popular cryptocurrency. The Ohio Treasurer Mandel is confident that this program will continue even if he leaves office next year. State Representative Robert Sprague will replace him as state treasurer after winning the election earlier this month.