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> Polis said the state is getting a payment provider to accept crypto equivalent and deposit the money into the state’s treasury for that amount. Colorado won’
by dghlsakjg 5y ago
> Polis said the state is getting a payment provider to accept crypto equivalent and deposit the money into the state’s treasury for that amount.
Colorado won’t be accepting bitcoin. They will be accepting dollars from a payment processor that accepts bitcoin.
Your tax bill will still be in dollars, and at the end of the day you will be responsible for ensuring that the correct number of dollars ends up in state coffers.
This is the same as saying that Colorado will now be accepting Canadian Dollars and Peruvian Soles because I can use a foreign denominated credit card with their cc processor.
- aaaaaaaaata 5y agoI'd consider it a win if I was using any of those currencies. You seem to be trying to make this not a win for cryptocurrency. It is. Sorry.
- babygoat 5y agoIs it really a “win” if no one else is playing?
- rafale 5y agoDoes sending Bitcoin to the payment processor count as a taxable event for you since the bitcoin will be sold for dollars? If not, that's a big deal.
- endisneigh 5y agoYea.
- Retric 5y agoIt counts as a taxable event.
- atlantas 5y ago“In Colorado, we’ve been laying the groundwork to be a center of crypto and blockchain innovation for a number of years. We see it as a critical part of Colorado’s overall innovation ecosystem,” shared Polis. If the governor is serious about this he will push to remove the tax, as some countries have. It'll be hard to be the center of crypto innovation while taxing transactions.
- tzs 5y agoAt most the governor could (with the help of the legislature) remove Colorado state taxes. He can’t do anything about federal taxes which would probably be the biggest concern for most people.
- bagels 5y agoThey don't get to choose whether it is for the IRS.
- rafale 5y agoSo it's effectively a gimmick. "Pay with bitcoin, and if u are in profit, it's gonna cost you a 20-35% extra!"
- deleted 5y ago[deleted]
- netcan 5y agoThis is true and an important point. A state accepting anything in lieu of its own currency is basically adopting another currency. That said, "you can now use crypto for X" is kind of news. The principle of "can do X with Crypto" may be established, but the practice isn't. Bigger news would be Y% of colorado residents pay tax with crypto.