The state will not hold any crypto assets, but will convert them into fiat at their end.
Colorado governor Jared Polis aims to promote cryptocurrency as a new asset class
Photo Credit: Unsplash/ Ewan Kennedy
Colorado in the US is taking progressive steps in terms of introducing crypto use cases for common people. Jared Polis, the governor of Colorado has revealed plans that, by this summer, he expects to facilitate tax-related transactions in digital currency. The state administration will then convert the collected cryptocurrency into fiat currency — US Dollars — on their end via an intermediary. As of now, the identity of this intermediary has not been disclosed by Colorado authorities.
Polis, 46, said during a recent interview, that the volatility related to crypto assets such as Bitcoin did not trouble him because his state was not planning on holding any cryptocurrency but converting them to fiat immediately.
“We expect by this summer — pretty soon — to accept crypto for all of our state tax-related purposes. Then we plan to roll that out across all of state government for things like, could be as simple as driver's license or hunting license within a few months after that,” the Colorado governor said during the interview.
Along with benefitting from the decreased transaction costs, Polis has cited new asset class promotion as another reason for planning to enable tax payments in cryptocurrencies.
After taking office in 2019, Polis signed the Colorado Digital Token Act that aimed to spare crypto tokens with a “primarily consumptive purpose” from some securities regulations.
Chris Hansen, the state senator of Colorado is also reportedly working on a bill that would allow state-developed digital tokens to be used for reserve purposes.
Several parts of the US are taking an experimental and positive approach towards the crypto sector despite uncertainty in regulatory laws.
The US state of Wyoming has introduced legislations to attract crypto miners.
US' Texas state offers a 10-year tax abatement, sales tax credits, and state-sponsored workforce training to crypto miners, attracting more of them, a report by Data Center Dynamics recently said.
Miami, the beach-town in US' Florida state rolled out a city-coin called the “MiamiCoin” last year.
In addition, Eric Adams, the mayor of New York City aims to make the metro the “centre of the cryptocurrency industry”.
Meanwhile, the White House may soon pass executive orders around the crypto sector as part of President Joe Biden's national security memorandum in the coming weeks, the exact timeline of which remains undisclosed as of now.
Government entities will be assigned the role of studying the crypto space and its elements like stablecoins and non-fungible tokens (NFTs) among others, news publication Barron's reported, citing an anonymous White House source as saying.
Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.
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