https://www.wsj.com/articles/pay-taxes-with-bitcoin-ohio-says-sure-1543161720?mod=searchresults&page=1&pos=1This is huge!Ohio appears set to become the first state to accept bitcoin for tax bills, a show of support for a technology that has garnered lots of hype but failed to gain traction as a form of payment.Beginning this week, Ohio businesses will be able to go to the website OhioCrypto.com and register to pay everything from cigarette sales taxes to employee withholding taxes with bitcoin. Eventually, the initiative will expand to individual filers.The idea to accept the digital currency for taxes came from state Treasurer Josh Mandel, who has held the office since 2011 and started taking an interest in bitcoin several years ago. Mr. Mandel, 41 years old, views the new program both as a convenience for filers and an opportunity for “planting a flag” for Ohio in the currency’s adoption.“I do see [bitcoin] as a legitimate form of currency,” Mr. Mandel said, adding that he hopes other states will follow suit.Bitcoin was intended as a currency that didn’t require government backing or support when it was introduced 10 years ago. Although it has had success as a tradable asset, it hasn’t gained broad acceptance as a form of payment and has been dogged by concerns that it is used to pay for criminal enterprises.Ohio’s move wouldn’t give bitcoin legal status, but it would be a kind of tacit approval bitcoin has so far lacked. Tax offices accepting bitcoin “does help send a message that bitcoin’s a technology that can be used by anybody—by bad guys but also by the government,” said Jerry Brito, the director of Washington, D.C.-based research firm Coin Center.Arizona, Georgia and Illinois have considered bitcoin for taxes, but bills addressing the issue have stalled in their state legislatures. Mr. Mandel, who is an elected official, said he can direct his office to accept bitcoin without approval from the legislature or governor.Ohio filers will technically send their tax payments to an Atlanta-based payments processor called BitPay, which will then convert the bitcoin to dollars for the state treasurer’s office.It isn’t clear how many businesses will take advantage of the service, though Mr. Mandel said he has heard from companies asking for it.Other states are starting to see bitcoin and its underlying technology, blockchain, as a way to attract talent and capital. Wyoming Gov. Matt Mead this year signed legislation to loosen the state’s regulatory environment and make it attractive for blockchain-based businesses to register and operate there. New York developed regulations for cryptocurrency businesses called the BitLicense. Delaware two years ago began a program to use blockchain technology within its corporate registry services, though the initiative lost steam after Gov. Jack Markell, who championed it, left office.Ohio’s Mr. Mandel is confident that won’t happen after his term ends in January. “I’m confident that this cryptocurrency initiative will continue,” he said.
Submitted November 26, 2018 at 12:38AM
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