Cryptocurrency is used in many places for various things. It has substituted several payment procedures but as far as the replacement of fiat concerns, the topic has been debatable. Recently, Ohio State announced, in a very first, that it will be accepting tax payments in the form of bitcoin. The founder of Blockchain Society at the University of Washington, Mitchell Moos, regards this as the first staircase step for the cryptocurrency to replace the fiat.
Mitchell Moos, also the co-founder of Coinglomerate and editorial manager at Cryptoslate, talked to BlockPublisher on the aforementioned latest development in Ohio. He said:
Crypto being accepted for taxes is the first step towards it replacing fiat. One of the main points of fiat is that it can legally be used to settle debts.
It was the decision of the Ohio Treasurer office to allow the use of bitcoin for payment of taxes. About twenty-three kinds of business taxes can now be paid with the cryptocurrency. These business taxes include utility tax, sales tax, employee withholdings etc. Ohio Treasurer will be utilizing the services of Bitpay, a global payment service provider, for collecting the tax payments in the form of bitcoin.
Ohio State is the first and only U.S state up till now which has taken the initiative to use the bitcoin for tax payments. Ohio Treasurer mentioned the qualities of cryptocurrency that made it a good payment option. According to them, the cryptocurrency opted was cheap, secure and transparent. Ohio State also explained each of these attributes in detail. Like they considered it to be secure because cryptocurrencies thwarted the fraudulent activities. Moreover, it was cheap as a very small amount of money was charged for confirming a transaction on the blockchain network.
It was revealed by the treasurer office that in the future, more cryptocurrencies will be available to people so they have more options and ease for payment of taxes through cryptocurrencies. At the moment, not all the crypto users will be able to use this facility. Only businesses, after possessing the wallet, are capable of using this facility. However, the initiative is a very prospective one as it may expand to other states as well in the future. It seems so promising one that Mitchell Moos regarded it as the beginning of replacement of fiat.