Ohio welcomes their blockchain network by becoming the first US state to accept Bitcoin as formal payment for taxes. It still will accept checks, money orders, credit and debit cards.
Taxpayers can settle various business taxes ? everything from sales and vehicle levies to employee tax and electricity costs using the e-currency as well as employee withholding and public utility taxes, starting next week.
The business firms interested in using the new system can register online at an official website by state’s Treasurer’s office ? OhioCrypto.com ? and cover their dues using the cryptocurrencies.
With a small fee to confirm the transaction, any business that operates in Ohio, even the ones that not based in the state, can use the portal to pay up to 23 taxes, including those on cigarettes and tobacco products.
The initiative is being driven by Ohio’s state treasurer, Josh Mandel. He claims that he doesn’t need to get formal approval from the state legislature or governor since he is directly elected, something which prevented other states like Arizona, Georgia, and Illinois from implementing the same.
In a press release, Mandel said, “We are proud to make Ohio the first state in the nation to accept tax payments via cryptocurrency.”
“We’re doing this to provide Ohioans more options and ease in paying their taxes and also to project Ohio’s leadership in embracing blockchain technology,” he added.
This new portal will take each payment and convert the virtual currency to actual dollars before being deposited into a state account through BitPay, the press release said.
BitPay is a cryptocurrency global payment system. It claims to provide more transparency in transactions using the blockchain technology and keep the Treasurer’s office from holding or using Bitcoins.
The system will reduce risk and identity fraud, and let payments be made quickly from anywhere, said Stephen Pair, BitPay co-founder, and CEO.
Addressing the volatility and dynamic nature of the, a 15-minute window for the transaction is set up by BitPay. A taxpayer is supposed to complete the payment during the set timespan, on the failure of which the transaction will be cancelled for the website to calculate a new conversion rate.
“BitPay sets the exchange rate for a 15 minute allotted time window for each transaction once a business taxpayer begins to make their payment at OhioCrypto.com,” the site states. “BitPay assumes the risk of any market fluctuations during the allotted time window.”
Bitcoin value in the market is plummeting at the moment and the price slipped below $4,000 on Sunday.Ohio becomes the first U.S. state to accept bitcoins for tax payment