Bitcoin [BTC] and other cryptocurrencies have caught the eyes of government officials. Only this time, in a good way. The Governor of Florida, Ron DeSantis wanted the state government to take things up a notch by employing crypto into its tax system.
The world’s first and largest cryptocurrency, Bitcoin has time and again been called out for being associated with the dark web. While that link is long gone, the world was viewing BTC and other cryptocurrencies for their utilities and value. As the entire globe rides the crypto bandwagon, Florida was seen getting on to it too.
Governor DeSantis seemed to be taking his interest in crypto to other officials as he urged them to allow businesses to pay tax in crypto. Speaking at a recent conference, the Governor said,
“I’ve told the state agencies to figure out ways, where if a business wants to pay tax in cryptocurrency to Florida, we should be willing to accept that. We’re working through that.”
Back in 2019, Ohio made immense news following its move to accepting crypto for tax payments. This, however, proved to be a failure. The number of businesses paying their taxes in Bitcoin was insignificant. As a result, the state took the portal down.
A repeat of this is highly unlikely as crypto was still in its nascent stage back in 2019. Now, however, the industry has taken off, both in terms of value and adoption.
Banking on the same, Colorado became the first state to accept crypto for tax. Florida seems to be riding a similar wave.
Is crypto the right choice for tax payments?
Crypto has been emerging as a prominent payment method. While some continue to crib about the volatility of the market, a few others continue to embrace them. If that’s a major concern then, the volatility index of Bitcoin has dramatically dropped since 2010. As of 2021, the average volatility of BTC/USD was at a low of 4.56 percent. Whereas it was as high as 8.26 percent back in 2011.
The government, by accepting taxes in crypto could in fact make profits.