News hardware Bitcoin: In this country, a new measure will make crypto much more useful
Bitcoin generally attracts the wrath of several people pointing out the fact that crypto is not used for much, except to speculate. However, with the help of this new measure, some Bitcoin holders will be able to put their Bitcoin to good use.
In the United States, Colarodo accepts payment of taxes in Bitcoin
It is precisely in the state of Colorado, that Bitcoin holders can now put their Bitcoins to benefit the community. Indeed, residents of this state now have the option of paying their taxes in crypto.
To do this, the state of Colorado called on a giant of digital payment systems: Paypal. In this case, the government worked closely with the company’s crypto subsidiary. Indeed, since 2021, the payment platform has been developing services related to cryptocurrencies. With this in mind, since 2021, Paypal has been offering crypto payment and transfer in several countries, including the United States.
Based on these new features of the payment platform, taxpayers with a personal account can pay their taxes with their cryptos.
“Only personal PayPal accounts can pay using cryptocurrency. PayPal Business accounts cannot pay in cryptocurrency at this time. You must have the full value of your invoice in a single cryptocurrency in your PayPal Cryptocurrency Hub”
However, not all taxes are supported. This measure applies to six types of taxation:
- personal income tax
- withholding tax
- business income
- severance pay
- sales and use tax
- fuel excise tax
These payments in cryptos are attractive since they generate less costs compared to payment by credit card. Indeed, the costs incurred by a classic transaction generally amount to more than 2%, compared to 1 dollar for crypto.
This initiative comes a year after Governor Jared Polis spoke, in which he said he wanted to make Colorado a crypto-friendly state.
“We promote Colorado as the center of the cryptoeconomy. “As a state, we are at the forefront of digital innovation, whether it is the application of blockchain and shared ledger technology as a new funding model…” said explained Jared Polis during Denver Startup Week.
Bitcoin: a real currency or a financial asset?
Bitcoin wants to be an alternative currency to fiat currencies like the euro or the dollar. For the moment, it is certain that the uses related to cryptocurrency remain quite limited. In addition to investment, Bitcoin is becoming more and more democratized in certain businesses.
For example, following the adoption of bitcoin as legal tender in El Salvador, several businesses are learning about cryptocurrency. Nevertheless, the time when people will be able to pay their living expenses using Bitcoin seems relatively distant.
This new measure paradoxically puts Bitcoin at the service of the state. With this new utility, Bitcoin fills more and more boxes to claim to become a real currency.