Treasurer in the U.S. state of Ohio, Robert Sprague has revealed that two companies have paid their taxes using bitcoin since the state launched its cryptocurrency payment platform in December 2018. Sprague did not disclose details of the amount or the details of the companies involved, citing confidentiality.
State to Review BTC Tax Payments
Speaking at aforumorganised by the Ohio State Associated Press on Feb. 19, Republican politician Robert Sprague said:
“We’re reviewing how [the program] might be either curtailed or might be expanded, and what our counter-party risk is with that vendor.”
Ohio became the first U.S. state to accept cryptocurrency as a means of payment for taxes late last year. Sprague told journalists about his experiences with the BTC payment option on the state platform ohiocrypto.com, established in December by Josh Mandel whom he succeeded in January.
According to the new treasurer, the state hired a company to process the bitcoin payments and convert the virtual currency into money to be sent to the Ohio treasury.The company takes 1 percentage commission on the transaction as payment.
Companies intending to pay taxes in cryptocurrency will have to register and create accounts on the state’s tax payment platform and submit details about their tax obligations, including tax period and the outstanding amount.
At the launch of the project, Sprague indicated that the move would help to improve the ease of doing business in Ohio and attract new business.
“We applaud the pilot that makes Ohio more business-friendly and sets us up as a leader in cryptocurrency. We will evaluate both currency and counter-party risk once we enter the office to see about the future,”