Ohio. The part of a title of that one Bowling for Soup song, home of Lake Erie and now the first state to start accepting crypto as a form of payment for taxes.
On Monday, December 3rd, businesses in Ohio will be able to pay their taxes in cryptocurrencies like bitcoin.
It seems like a rather easy process to enroll. Companies that want to join in on all of the history-making, crypto fun just have to go to OhioCrypto.com and then register to pay whatever taxes they want in crypto. There are 23 eligible business-related taxes and there is no transaction limit.
While there is no timeline set, there are hopes of expanding the program to individual tax payers.
Ohio’s state treasurer, Josh Mandel, is the man responsible for the state’s light speed propulsion into the finance future. The crypto program is just one step of many of the state’s bigger picture goal of rebranding itself as tech-friendly. Mandel is quoted as saying, “We’re doing this to provide Ohioans more options and ease in paying their taxes and also to project Ohio’s leadership in embracing blockchain technology.”
I had no clue Ohio residents were referred to as Ohioans, but onto the thought I’m sure looming in the back of everyone else’s mind:
What could go wrong with a crypto tax payment program?
For starters, the crypto market is currently the definition of a dumpster fire. Crypto has been in a nose dive for sometime now. Last November, Bitcoin prices capped off at about $8,000. This November, it isn’t even half of that.
Also, what is a stat going to do with a bunch of crypto currency. The treasurer’s office is not holding, mining or investing in crypto for payments or processing. Instead, the state will work with a cryptocurrency payment startup, BitPay to convert the bitcoin to dollars. But per the startup’s official blog, their open-source Bitcoin wallet Copay has been compromised by malicious code. BitPay says that their app was not vulnerable to the malicious code but that they are investigating whether or not any of the CoPay users had been exploited by the vulnerability.
Ignoring those slight holes in the plan, it is kind of cool that Ohio is the first state to make its foray into blockchain payments. They even have plan to expand into other cryptos in the future.
Never thought I’d say that Ohio would lead the way into the future but hey, it’s been a weird year, so why not.