The governor of US state Colorado, Jared Schutz Polis, recently announced that his state is open to accepting Bitcoin for tax payments. Speaking at a media session, Polis stated that this new development would kick into effect from the tail end of the second quarter this year. In addition, the Colorado state governor also revealed that his administration was already fast-tracking a plan to meet this time target.
In addition to BTC, Colorado residents will also be able to pay their taxes in other digital currencies. Polis, an ardent devotee to digital assets, assured that the planned tax initiative was in the works. His comment seemingly responds to some concerns from residents who worry about the stability and applicability of the prominent coin. The state governor did acknowledge that the biggest problem posed by crypto was its wild volatility which could affect the value of remitted taxes. As he put it:
“It is important that people know from a state perspective we cannot be in the business of having exposure to a market where securities, including cryptocurrencies, flash away.”
Polis also added that:
“Our expenses are in dollars so when we talk about accepting cryptocurrencies for payment they would be converted back into dollars for our purpose.”
To address the volatility issue, the Colorado state governor explained they would be enlisting the services of an intermediary. This intermediary would help to swiftly convert the digital currencies to dollars.
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