Arizona Races to Allow You to Pay Your Tax with Cryptocurrency
While many countries are trying to clamp down on cryptocurrencies, some areas are pursuing a different strategy. Small territories like Gibraltar and Estonia have recognised that welcoming crypto activity could be a way of differentiating themselves in the global marketplace. Now US states are following suit.
At the forefront is Arizona. Bill 1091 has just been approved by the state senate and is now heading to the House of Representatives for its consideration. If it passes in the House, citizens of Arizona will be able to pay their income tax in cryptocurrency.
From 2020 the revenue department would accept cryptocurrency payments, having 24 hours to convert them to dollars. Any underpayment due to currency volatility would be the responsibility of the taxpayer.
Senator Warren Peterson, who sponsored the bill, said that they wanted to increase the options given to taxpayers. “This is all about ease and convenience,” he said, adding that, “here in government, we are here to serve the people.”
Arizona is aiming to position itself as a cryptocurrency friendly hub within the United States. Jeff Weninger, one of the bill’s co-sponsors, said that the tax reform was just one of “a litany of bills” being introduced to show the US, and the world, that “Arizona is going to be the place to be for blockchain and digital currency technology in the future“.
One of the other bills currently under consideration would enshrine the right to mine cryptocurrency in your home home by blocking local regulation or restriction of blockchain nodes.
As part of Arizona’s welcoming approach to cryptocurrency operations, Dash, which is based in the state, recently partnered with the University of Arizona on its Blockchain Research Laboratory.
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