Ohio Moves To Accept Crypto Payments In State Fees

Ohio has approved crypto payments for state services, and is advancing its digital finance push with new laws and a planned crypto reserve.

Ohio has officially moved forward with crypto adoption. The State Board of Deposit recently approved a vendor that will allow residents and businesses to pay fees and services using Bitcoin and other digital assets.

Secretary of State Frank LaRose and Treasurer Robert Sprague had been urging this change since April, and the unanimous board approval now clears the way for implementation.

Why Ohio Wants Crypto Payments

Ohio officials argue that offering crypto payments modernises public finance. LaRose said that ranking among the top states for business requires the state to embrace new financial tools and technologies.

Treasurer Sprague added that using digital assets is simply another step in keeping up with the rise in new payment practices. The state already processes hundreds of thousands of transactions annually, so adding Bitcoin and other cryptocurrencies as options provides convenience for residents and businesses alike.

Coinbase Chief Legal Officer Paul Grewal responded to the announcement and noted that government payments in Ohio are moving on-chain, with full implementation expected soon.

The Ohio Blockchain Basics Act

Ohio’s crypto adoption does not stop with vendor approval. Earlier this year, the House of Representatives passed the Ohio Blockchain Basics Act, also known as House Bill 116. 

The bill prohibits state and local governments from restricting the use of cryptocurrencies as payment. 

It also bans additional taxes or fees on digital asset transactions and exempts transactions under $200 from capital gains tax.

The bill, signed by Governor Mike DeWine, is still awaiting approval from the Senate. If it passes, Ohio residents will enjoy one of the most permissive crypto environments in the country.

Supporters say that the bill makes it easier for individuals and businesses to use digital assets without fear of unnecessary restrictions. 

Dennis Porter, CEO of the Satoshi Action Fund, called the law a clear signal that Ohio lawmakers are committed to innovation.

Supporters See Benefits for Business

Supporters argue that crypto adoption makes Ohio more attractive to entrepreneurs. LaRose pointed out that ranking in the top five states for business is partly due to adopting new tools and trends.

Representative Steve Demetriou, who sponsored House Bill 116, said the state is ready to show the country that it can embrace blockchain technology. 

He said that Ohio could become the first state to implement a common-sense regulatory framework for crypto if the Senate advances the bill.

By reducing tax burdens on smaller transactions and providing regulatory clarity, lawmakers hope to encourage businesses to expand in the state.

Challenges Ahead

While the vendor approval is a milestone, there are a few practical challenges to worry about. 

The vendor will need to handle conversion from crypto to U.S. dollars for state accounts and ensure compliance with financial regulations. This step is important to avoid volatility risks associated with digital assets.

The rollout will also test whether residents actually prefer paying in crypto. Even though demand exists, traditional methods like credit cards and bank transfers continue to be dominant. 

Overall, other states will be watching closely to see if Ohio’s experiment proves successful enough to justify further adoption.

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