The State of Colorado Will Accept Taxes in Cryptocurrencies

Jared Polis, the governor of Colorado, said in an interview with CNBC that all crypto holders in the state of Colorado will soon be able to send tax payments in crypto as soon as the summer of 2022. The governor also added that paying taxes in cryptocurrency “would be the first step”. It is planned to introduce more payments for digital assets for some types of licenses.

The governor also added that he is open to picking a broker company that will be designated in the exchange of cryptocurrency for fiat money. “We expect to accept cryptocurrency for all state tax purposes this summer,” Polis said. Then it is planned to extend the use of digital assets to state government agencies that issue DMV and hunting licenses. According to him, most likely this will happen this fall.

The governor added that he was not worried about the volatility of cryptocurrencies. He also believes that transaction costs will be reduced due to the decision of the state to accept cryptocurrency payments.

As a reminder, after taking office in 2019, Polis signed the Colorado Digital Token Act into law. This legislation seeks to exempt “primarily consumer-use” tokens from certain securities regulations. The Governor added that State Senator Chris Hansen is also working on a bill that would allow state-created digital tokens to be used for public reserve purposes.

In January, Senator Hansen introduced legislation that proposed amendments to the state's commercial code to protect ownership and control of digital assets, similar to the changes passed by the state of Wyoming.

A number of U.S. lawmakers have already proposed eliminating potential regulatory uncertainty about digital assets at the state level, apparently rather than waiting for decisions from Congress. For example, the state of Wyoming has passed several local legislations aimed at attracting crypto mining businesses to the state’s economy.

Apparently, some U.S. states are increasingly welcoming cryptocurrencies into their economies in order to lure the increasing number of companies focused on digital assets.