Jared Polis, Colorado State Governor, has announced that Colorado will be the first American state that allows its residents to pay taxes in cryptocurrencies like Bitcoin, Ethereum, etc by the end of 2022 Summer.
“For consumer convenience, we want to accept payment in a wide variety of cryptocurrencies, just as we do in credit cards,”said Polis.
How the state will exchange money when residents pay taxes using crypto
Polis said that Colorado will start to accept paying all of the tax-related purposes, then it will accept it for other things like driver’s license or hunting license.
The governor said Colorado will partner with blockchain exchange companies to handle these crypto transactions and all The funds collected after residents will immediately be converted to dollars, so that the state reduces the risk of crypto price volatility.