Would You Pay Your Taxes in Crypto?
Back in November, the mayor of my city agreed to accept his next paycheck in crypto.
Mayor Francis Suarez did this as part of his plan to make Miami the most crypto-friendly city in the U.S.
His tweet announcing this move caught the attention of the then mayor-elect of New York City.
Mayor Eric Adams promised to accept his first three paychecks in crypto.
A few weeks back he kept that promise and took his first payment in bitcoin.
The one obstacle for these two mayors is that city governments aren’t set up to pay directly in crypto.
So, they have to rely on middlemen to turn their checks into crypto.
That’s where the mayor of Jackson, Tennessee comes in.
He’s getting his city to explore crypto payroll conversions for all city employees.
These moves show the growing acceptance of crypto in government.
And now crypto is continuing this momentum by entering another area — taxes.
Colorado Aims to Be the Most Crypto-Friendly State
Big-name cities like Miami and New York City steal the spotlight when it comes to crypto moves.
But they aren’t the first to make the push to transform themselves into a hub for crypto.
The state of Colorado started its efforts toward crypto acceptance back in 2019.
It set up a Blockchain Council to explore blockchain solutions in government.
This led to Governor Jared Polis saying last week that Colorado is the center of the crypto economy.
He was referring to the fact that the state will accept taxes in crypto starting this summer.
Polis came up with this proposal last May to make Colorado more convenient for crypto companies.
The state will take the taxes in crypto and then exchange it for dollars.
The governor said they’re currently looking for a crypto brokerage to help with this.
Get Your Tax Refund in Crypto
Partnerships with crypto brokerages can be useful when it comes to crypto and taxes.
They allow companies and governments to support cryptos without taking on their volatile prices.
This is exactly what TurboTax is doing this tax season in its partnership with Coinbase.
TurboTax will give you the option to either add or create a Coinbase account when you do your taxes.
And when you receive your federal or state tax refund, it’ll go straight to your Coinbase account.
From there you can buy the cryptos of your choice.
This is a timely development, considering that the government recently updated the tax code to include cryptos.
It now defines cash as “any digital representation of value.”
These moves are just the beginning. And we can expect to see more like it as crypto acceptance grows.
To catch up with the latest developments in crypto, you can watch Ian King’s special presentation.
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