First US State Set to Adopt Cryptocurrency as Tax Payment
This move may prove to be revolutionary for the US financial system
Residents of the US state Arizona may soon be able to pay their income tax using bitcoins or other cryptocurrencies, after the Senate passed a bill on February 8. The bill is now waiting the verdict of the state’s House of Representatives.
Arizona is set to become the first US jurisdiction to adopt that measure in a revolutionary step towards fully accepting cryptocurrencies as a payment method.
“A taxpayer may pay their income tax liability using a payment gateway, such as bitcoin, litecoin or any other cryptocurrency recognized by the department, using electronic peer-to-peer systems,” the bill, which is set to enter into force in two-years time reads. “The department shall convert cryptocurrency payments to United States dollars at the prevailing rate after receipt.”
According to Jeff Weninger, Republican member of the Arizona House of Representatives, Arizona is on its way to become a hub for blockchain and digital currency technology in the future.
Among other world jurisdictions, two municipalities in Switzerland have already started accepting bitcoin in tax payments – Chiasso and Zug.
Two years ago, another US state, New Hampshire, considered that kind of bill, but it didn’t pass, with vote gone 264 to 74 against it.