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Industry practices will need to change as more businesses get involved in blockchain technology. Cryptocurrencies are different from blockchains. Nevertheless, they have been integral to the innovation that shook the global markets. One state is taking the lead by facilitating transactions in crypto.
Company Tax Payments
The Office of the Ohio Treasurer is targeting businesses that are interested in cryptocurrencies. It will become the first state to use cryptocurrency as an official method for paying taxes. Only payments in Bitcoin are being accepted at the moment. The state’s new tax portal is available through OhioCrypto.com. Companies just need to register, enter their tax information, and then use a secure Bitcoin wallet. Currently, any business that wishes to use this service to pay their state taxes will have their payments processed through BitPay. For more information about how the program works visit this link. The new program has become active as of Monday.
Cleveland: A Leader in Technology
Josh Mandel is the state’s treasurer. He is leading an initiative that is transitioning operations toward more technologically savvy business practices. The state’s new technological influence is being driven from two hubs. Both Columbus and Cleveland are making a push to attract more tech companies. Columbus is already host to Drive Capital. The dominant Midwest company manages one of the region’s largest venture capital funds. Cleveland, a city that has seen its share of successes and failures, is now rebranding as a crypto first industry. The city is marketing itself as “Blockland”. This primes Cleveland to bring in blockchain investment and talent.
Current State of Cryptocurrencies for Paying Taxes
Ohio is investing into cryptocurrencies during a bear market. This can prove quite lucrative since prices are so low. It can also end up being a media fiasco if the program fails. While blockchain technology and new crypto projects are on the rise, the negative press due to falling prices is keeping the overall market cap low. Still, the state has recognized that blockchain technology continues to innovate. Cryptocurrencies are also seeing a continual flow of new projects entering the young industry.
Other states like Georgia, Illinois, and Arizona are looking into accepting cryptocurrencies, though, none have yet committed to accepting them. This may change now that Ohio has set a precedent. Additionally, since implementing blockchain is often about efficiency, it may demonstrate a way to generate more revenue without additional resources. This last scenario would undoubtedly encourage more states, and possibly even the federal government, to follow suit.
Tax payments via Bitcoin will likely entice state governments to look at other cryptocurrencies. Bitcoin is usually the first cryptocurrency chosen because it is considered the most secure. However, there are many other cryptocurrencies with a lot to offer. Ethereum can do for secure business apps what Google Play and the App Store did for mobile computing. Ripple is well-known by industry professionals as a banking and payment solution. Bitcoin Cash is quite popular because it combines speed with functionality. And EOS is an exciting platform that is securing a way to blockchain the entire Internet. Cryptocurrencies have value. Support from reputable networks might be all that is needed for widespread adoption.