CO Residents Can Officially Pay Taxes With Cryptocurrency

TaxBuzz

In recent years, investing in cryptocurrency has become increasingly more commonplace. Now, Colorado residents can officially pay their state taxes using crypto.

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Axios Denver reported on the measure, noting that Governor Jared Polis (D) made good on a campaign promise when he announced that cryptocurrencies are now a valid form of tax payment.

Residents can use the blockchain to pay for individual income tax, business income tax, sales and use tax, withholding tax, severance tax, and excise fuel tax.

Polis is committed to encouraging widespread use of blockchain technology in Colorado, and this move is part of a larger program pushing residents to invest in cryptocurrency.

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The announcement came on the first day of Denver Startup Week, which celebrates entrepreneurs in tech and other industries.

If you are interested in learning more about how to pay your state tax bill using cryptocurrency, the Colorado Department of Revenue offers additional information.

In an ironic twist, Polis's announcement comes as well-known cryptocurrencies like Ethereum, BNB, XRP, and Cardano posted notable losses over the weekend.

Bitcoin, the most popular cryptocurrency in the world, hit a three-year low. CNBC shared thoughts from Sadie Raney, co-founder and head of operations at Strix Leviathan:

“Regulatory pressure, rising base rates, and inflation are pressing heavily on riskier asset classes, especially crypto, and are thus forcing liquidations, reducing capital available for investment, and increasing concerns over undefined regulatory controls. These forces may mute the overall crypto complex until the financial system stabilizes and a regulatory framework becomes more clear.”

What do you think about Colorado allowing residents to pay state taxes with cryptocurrencies?

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