Ohio State Treasurer Josh Mandel made history on November 26 with the announcement that Ohio is the first state in the U.S. to accept tax payments made in cryptocurrency.
The announcement, posted on the Ohio State Treasurer’s website, states that for the first time in all the 50 states – and also in most of the world, for that matter – Ohio is now allowing citizens to pay taxes using cryptocurrencies backed by a blockchain security system.
The new website which will accept those tax payments is at OhioCrypto.com. It uses a payment solution called BitPay to manage the transactions. The only cryptocurrency it currently accepts in Bitcoin, but the Treasurer’s office is apparently planning to add other cryptocurrencies in the future.
In announcing the news, Treasurer 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.”
Stephen, co-founder and CEO of BitPay, the payment transaction system used to process these payments, said, “With BitPay, Ohio can leverage blockchain technology and benefit from reduced risk and identity fraud as well as enabling quick and easy payments from any device anywhere in the world and get paid in dollars. This vision is at the forefront of moving blockchain payments into mainstream adoption."
Payments on the blockchain offer real time tracking, and cryptocurrencies cannot be transferred to third parties without user initiation. A minimal fee is charged to confirm the transactions, and anyone can view all transactions on the blockchain network. Bitcoin is the only cryptocurrency currently eligible for payment at OhioCrypto.com, and the Treasurer's office looks forward to adding other cryptocurrencies in the future.
For those still wanting to pay the old-fashioned way, other means by which businesses can pay their taxes through the Treasurer's office include ACH credit, ACH debit, check and money order. The cryptocurrency payment option, via OhioCrypto.com, is the newest option for businesses. Taxes eligible for payment on OhioCrypto.com include 23 different taxes.
To avoid any risks for the state, at no time will the Treasurer’s office hold cryptocurrency. Payments made on OhioCrypto.com are immediately converted to U.S. dollars before they get deposited into a state account. The Treasurer’s office has partnered with BitPay as its sole third party cryptocurrency global payment processor.