During an interview on CNBC Crypto World on Tuesday, Colorado Governor Jared Polis said he wants his state to become “America’s first digital state.” state income taxes using Bitcoin and Ethereum starting this June.
“Using an external portal, we plan by this summer to accept crypto for all of our state-related tax purposes, and then we plan to roll it out to all of state government, for things like — could be as simple as – driver’s license or hunting license a few months after that.The largest set of transactions will be the [state] the taxes people pay, but we plan to accept crypto by this summer.”
Governor Polis Says He’s Not Worried About Crypto Volatility
You might be wondering how crypto as a form of payment is possible given the large and wild price swings that can occur in the cryptocurrency space. In the past, we have seen seesaw price action on Bitcoin and Ethereum assets over 20% in a 24-hour window on several occasions, but the Governor says their system takes this into account.
“In our case, we would not hold Bitcoin or Ethereum as an asset class. It would be paid [by residents] then converted to dollars in real time in our accounting mode – our budget is approved and our expenses are incurred in dollars. It would really convert when it gets paid, just like we accept credit card payments, but with a much lower transaction cost than a credit card.”
Colorado wants to issue its own digital tokens for bonding and project financing
Polis also noted that state lawmakers are considering a digital token bill that would allow Colorado to create its own blockchain-based digital tokens for special projects and various public works as an alternative to raising taxes. or the issuance of bonds, which could harm the credit rating of the state. .
“There is a bright future for how the public sector can benefit from the distributed ledger and the crypto-economy – not co-opted. It challenges the very concept of cryptocurrency to have any kind of backed security But I think we can benefit from both in terms of payments, reducing transaction costs and friction, but also creating new asset classes to meet reserve requirements, while protecting also people’s privacy.
Denver has already used blockchain technology in a municipal election
Polis further stated that they are already going beyond just accepting crypto. His administration is exploring a wide variety of use cases for crypto, including agricultural shipments, livestock provenance, employee ownership of businesses, as well as voting for elected officials.
“For example, the city of Denver held – I think – the first blockchain-confirmed U.S. election for its overseas and military ballots two years ago in its municipal elections, including about 8,000 ballots. .. these are exciting times and Colorado wants to be as hospitable as possible to distributed ledger, ownership models.”
As cities like Miami and New York embrace CityCoins for bonding projects and their mayors accept salaries in Bitcoin, the scope and scale of what is happening across the state of Colorado is inspiring. As this state pursues its goal of becoming “the first digital state,” it will undoubtedly become a model for other municipalities statewide.
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Tor Constantino owns Bitcoin and Ethereum.
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