The rise of cryptocurrency has attracted the attention of governments across the globe, with many seeking to legalize it while others seemingly trying to strangulate its operations within their areas of jurisdiction. The state of Arizona, having recognized the inevitability of Bitcoin in trade, has decided to pass a bill that will allow its residents pay taxes using Bitcoin.
It is difficult to use Bitcoin to pay for daily services but it has worked for luxury services. An intermediary service has to be used when paying for bills because Bitcoin option is not available. Things will not change very fast as many would expect.
The Arizona government’s move to give Bitcoin a recognized status in tax payment has left many cryptocurrency enthusiasts with a feeling of victory. Where this motivation came from has not been established yet, the move is celebrated and put the state on a world map.
Having approved the Senate Bill 1091, the state has officially allowed the residents to pay taxes using Bitcoin as well as other cryptos recognized by the state. The bill had already been submitted earlier on, but no major changes were initiated on it. This notwithstanding, the major bases were covered by the measure.
It is to be understood that excitement aside, it is a risky venture considering the volatility of Bitcoin nowadays. But the state officials think this is the best time to get into cryptocurrencies. This may even lead to a major legislative shift in matters Bitcoin.
It is obvious that Arizona is placing itself as cryptocurrency hub by allowing Bitcoin to be used in settlement of taxes. This is so because previously, up to and until today, cryptocurrencies have been associated with negative activities such as financial crimes, hacking and illegal content.
The Arizona move did not sail through without a grueling fight: it split the Senate right into two. Those using Bitcoin to pay taxes will be exposed to sudden Bitcoin price changes. This means that Arizona will require a third party to process the digital currency payments into the fiat money.
While this is exciting news to the crypto enthusiasts, the bill has to be scrutinized by the Arizona House of Representatives for an official endorsement before its enforcement. As things stand now, there is great debate around it and as expected, this move is likely to set in the domino effect across the globe.