Not just for its brewery culture, US state Colorado now makes headlines for being the first state in the country to accept taxes in cryptocurrencies. As per reports, the authorities have announced that residents can now pay their taxes in cryptocurrencies instead of fiat.
Among the crypto that are accepted by the state, are Bitcoin (BTC) and Ether (ETH) which are the two biggest by market capitalization. Users can pay using Bitcoin Cash and Litecoin, too.
However, note that the State’s Revenue Department is not directly allowed to accept crypto payments. Hence, the department partnered with PayPal, to help with the transactions.
The State’s officials disclosed that Colorado residents can use cryptocurrencies for paying business income tax, individual income tax, sales and use tax, severance tax, withholding tax, and excise fuel tax.
Daniel Carr, spokesperson stated, “Cryptocurrency has been modified as an additional payment option for taxpayers who are ready to complete their online transactions to pay for their state taxes on Revenue Online.”
PayPal will serve as a broker for each transaction and will convert cryptocurrencies into US dollars, and so consumers will have to pay service fees for it.