Treasurer in the U.S. state of Ohio Robert Sprague has revealed that at least two companies have paid their taxes using bitcoin since the state launched its cryptocurrency payment platform in December. Sprague did not disclose details pertaining to the amount or companies involved, citing confidentiality.
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State to Review BTC Tax Payments
Speaking at a forum organised 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, Ohio doesn’t actually receive or hold bitcoin, but Bitpay, the company hired by the state to process the bitcoin payments, converts the virtual currency into fiat money before it is sent to the Ohio treasury.
Bitpay takes 1 percent commission on the transaction as payment. Companies intending to pay taxes in crypto will typically 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.
When the project was launched three months ago, 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
