Starting today, Ohio companies can pay taxes with Bitcoin. The authorities will use the BitPay cryptographic payment processor that will handle the encrypted payment and the dollar conversion to the tax office.
From the time of creation, Bitcoin has captured deep interest from governments that have given a critical look to digital money and the blockchain in general or have enthusiastically supported it. Among the latter are the Ohio state authorities, where Bitcoin is offered as a means of paying state taxes starting today.
According to the Ohio Treasurer's website, twenty-three types of business taxes will be available for payment in the crypt, including taxes on public services, sales tax, and employee retention. Companies that wish to participate in the program simply need to go to OhioCrypto.com and register to pay all their corporate cryptography taxes. Companies that operate and pay taxes in Ohio are eligible – they do not necessarily need to have headquarters in the state.
The Ohio authorities see cryptocurrencies as a secure, transparent and low-cost means of payment:
"Cryptocurrencies can not be transferred to third parties without user activation, virtually eliminating frauds, anyone can view all transactions on the blockchain network, and payments on the blockchain can be tracked on the second second a minimum fee is charged to confirm transactions on the blockchain network. "
To process the payment, Ohio's Treasury Department will use BitPay, the world leader in blockchain payment technology.
– BitPay (@BitPay) November 25, 2018
The initiative makes Ohio the first state and one of the first governments in the world to accept cryptocurrency. Currently, Bitcoin is the only accepted currency, however "the Treasurer's office plans to add more cryptocurrencies in the future," as the Treasurer's Office states.
According to the Office of the Treasurer, they are "working to help make Ohio a national leader in blockchain technology", which means that the state is trying to gain the reputation of a blockchain technology center. As the current state treasurer Josh Mandel said, the bitcoin program is intended to be a signal of the state's broadest ambitions to refer to a more technological image.
Cryptocurrency market massacre
Last week, the crypto market suffered a bloodbath and slipped below $ 120 billion, losing 40% in the last 12 days. In the last week, Bitcoin lost almost 30% of its value. Yesterday morning, the digital currency fell to $ 3,447.58, the lowest level since August 2017. However, news from Ohio contributed to the recovery of Bitcoin. The battered currency has risen to $ 4000 on Sunday. Currently, the price of Bitcoin is $ 3,956.
Other coins have suffered as well. The price of XRP fell 23% from last week and is currently trading at a price of $ 0.37 with a market capitalization of $ 15.88 billion, continuing its position as a second cryptocurrency.
Regarding Ethereum (ETH), it lost 29% in price during the last week and currently trades at $ 114 per token with a market capitalization of $ 11.79 billion. Saturday, the third currency by market capitalization has lost 14.9% of its price, making a new low for the year.