Colorado will soon become the first state in the country to accept cryptocurrency for tax payments and may expand crypto to other state businesses like driver’s license and hunting license fees too.
Gov. Jared Polis (D) signed the Digital Token Act, which will allow Colorado residents to pay their taxes with cryptocurrency by this summer. In a recent interview with CNBC, Polis explained that the state’s expenses are all in dollars, so payments made with crypto would be converted back to dollars by an intermediary.
“We are getting a payment provider to accept crypto equivalent and deposit the dollars into the state’s treasury for that amount. It is kind of like credit card payments, with the bonus that there are no returned payments,” said Polis in a tweet.
Crypto is expected to be expanded in use in Colorado’s government, with Polis saying driver’s licenses, hunting licenses and other fees will also accept crypto as payment.