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Colorado to accept crypto payments for state taxes

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TL;DR Breakdown

• Colorado sees a future for decentralized commerce.
• Governor of Colorado equates payment in crypto with TDCs.

Colorado is ready to embrace crypto payment systems. However, the US region will apply taxes on crypto transactions to balance the market.

Jared Polis, Governor of Colorado, clarifies that this is ambitious. At an interview with CNBC, the politician spoke about decentralized commerce, payments with cryptos, and the control that should be applied to the market.

How does Colorado view the crypto market?

Colorado

Since 2021, the United States has gained participation in the crypto trade. This occurs due to the market’s regulations from China and the United Kingdom. Places like New York, Texas, Los Angeles, and Colorado have allowed crypto to change the traditional financial system.

The western US region appears to be willing to accept crypto but on its terms. The state government seeks to take advantage of crypto transactions to pay tax rates and cover various services.

Like other states in the US, Colorado considers that the regulation against cryptos is necessary. States should adopt decentralized commerce as its adoptions wave rolls on by the day. It is to be remembered that the politician Jared Polis is a cryptography promoter. He was even one of the many politicians who accepted donations in Bitcoin after his political activity.

Colorado could pay tax rates in cryptos

The leader in Colorado clarifies that the crypto project has been in development since the second quarter of 2021. However, his pressure for the state to accept cryptos has been maintained since 2018, And he will not rest until he achieves it.

However, Polis reveals to CNBC that his exposure to the crypto market should not be exaggerated due to the risks that investors could take. Given this opinion, Polis mentions the fluctuation that Bitcoin and Ethereum have in the virtual market.

Polis said that each payment is in USD. Therefore, if he received cryptos, he would likely use an intermediary to change from BTC to fiat. The Democrat closes the interview by saying that crypto rewards are like using TDCs, but with a more flexible tax rate.

According to CryptoGlobe, a crypto research agency, some US companies seek to adapt to decentralized trading as early as 2021. The agency indicates that companies see Bitcoin as a more profitable option to fiat, the US dollar. However, cryptos have a volatile price, which is not pleasant for many investors.

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