The state of Colorado will accept bitcoin for tax payments.
Colorado, according to Axios Denver, has just announced that taxes can now be paid in Bitcoin.
The Colorado government, led by Democrat Jared Polis, announced last Monday at Denver Startup Week that it will accept Bitcoin as payment for a variety of taxes.
But payments will have to be made through a Paypal account, which, when combined with the fact that people who use the currency aren’t likely to get rid of it, could hurt the privacy of taxpayers.
The simple desire of cryptocurrency holders to hold on to their cryptocurrency in search of its valuation renders the idea of paying their taxes with it absurd, but there is a very important issue parallel to this, which is the valuation that such individuals also grant to their privacy and freedom of speech, because it would require a Paypal account, which is notorious for canceling the accounts of numerous individuals for unusual reasons.
If one state accepts Bitcoin as a way to pay taxes, it may encourage other states to do the same, which could lead to more institutions using the currency. However, we must be careful of attacks on users’ privacy and freedom of speech, as the cryptocurrency is based on protecting these values.
Arizona has already begun to accept Bitcoin for tax payments.