Sunday, June 16, 2019

Only Two Businesses Use Bitcoin For Tax Payments Says Ohio

Unlike the predicted effect of Ohio’s major acceptance of Bitcoin as a tax payment method, the crypto payment seemed to be slowly taking its action on businesses.

Ohio Reveals Slow Progress In Bitcoin Tax Payments

As unusual for some and obvious for most, Ohio’s state treasurer Robert Sprague, stated on February 19, at a forum handled by the Ohio State Associated Press, that the bitcoin method of paying taxes seemed to have a lapse on its effect. This is due to its slow progress in the state wherein only two businesses sent crypto as their state tax payment.

Ohio Accepted Crypto For Tax

Back in November 26, 2018, Ohio– a state in America– became the very first US state that accepted crypto, specifically bitcoin, as a method of paying taxes. Most of its levied taxes were mainly cigarette taxes and many more.

“Our biggest motive here was to give taxpayers more options in paying their taxes… (we’re) proud to do our small part and take this small step to make Ohio the first state in America to enable taxpayers to be able to pay via cryptocurrency,” says former ohio treasurer Josh Mandel In Bloomberg.

As a reminder back in that time, Bitpay–  an Atlanta-based bitcoin payment processing firm– will be handling all crypto tax payments as a part of the state’s reform in becoming the global hub of cryptocurrency in the country. Part of this action also connected with the state’s crypto portal called Ohiocrypto.com — wherein crypto payments were supposed to be submitted.

Although the plan seemed to be a successful outcome of a US state and crypto as an industry at first, since businesses all over the state gained full trust in the platform, Sprague revealed that crypto tax payments received by their agency only came from two businesses– in where they did not publicly announce the names.

Either We Quit Or We Continue

When also asked about the value of the crypto tax payments received by the treasury department, the agency declined to give more details about it and just explained that a meeting will be set to talk about the said program.

“We’re reviewing how [the program] might be either curtailed or might be expanded, and what our counter-party risk is with that vendor,” says Sprague in an interview.

Still High Hopes

Different reactions were shared online about this news in Ohio, although many were devastated with its decreasing progress, some continue to hope that the risk that Ohio made through its agreement with cryptocurrency will soon flourish as a great idea to be copied at, among other states.

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