Various states in the US are taking a closer look at Bitcoin. Not just in terms of regulation, but also as a potential payment method Georgia officials are currently contemplating accepting cryptocurrencies for tax payments. A new bill has been introduced which may make all of this possible very soon.
Paying taxes with cryptocurrencies sounds very strange to a lot of people. Even though it is not uncommon, it’s not something most people would do willingly either. At the same time, one has to applaud officials in Georgia for giving this option some thought. The new bill introduced earlier this week is rather open-minded toward cryptocurrencies altogether. Bill 464 has not been officially approved as of yet, but it does spark a lot of intriguing discussions.
An Interesting Proposal in Georgia
All cryptocurrency payments made for tax purposes will be converted to US Dollars within 24 hours. It is unfortunate Georgia state will not hold on to this funds, although that’s also understandable. Cryptocurrencies remain extremely volatile by nature, which can create a lot of losses. It’s not in any government’s best interest to suffer from losses due to market fluctuations. Converting the payments to US Dollars is the logical option as of right now. How this will happen exactly, remains unclear, for the time being.
It is also worth noting the Georgia bill is not limited to Bitcoin. Instead, it also mentions other electronic peer-to-peer cryptocurrencies”. This seems to hint at potentially using altcoins in the future. Which currencies this will entail, has yet to be determined. It seems likely to assume the top currencies by market cap will make that list rather easily. Exceptions may include the privacy-centric currencies, such a Dash and Monero. We will have to wait and see how this plays out in the next few months.
One lingering question is whether or not this is a positive development. After all, another use case for cryptocurrencies is a positive development. However, it is possible this will also lead to further taxation of Bitcoin capital gains in the state of Georgia, That isn’t necessarily a bad thing, but it is something to keep in mind. For now, Bill 464 will go through the process of being reviewed by various officials and committees.
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