Colorado begins accepting Bitcoin for tax payments as BTC sinks below $19,000

  • Colorado State Governor Jared Polis announced a plan to accept crypto for taxes earlier in February.
  • Initially, the payments will only be accepted using Bitcoin, Ethereum, Bitcoin Cash and Litecoin via PayPal.
  • Bitcoin has been inching closer to 21-month lows, having fallen below $19,000.

The global crypto adoption streak continues, with the Colorado government now welcoming the payment of all kinds of taxes using cryptocurrencies. Although since the broader market condition is not necessarily improving, this facility might not see a lot of takers.

Colorado inches closer to being a crypto state

After declaring that the state of Colorado would begin accepting cryptocurrencies for the payment of taxes by summer 2022, Governor Jared Polis seems to have finally walked the talk. 

Polis officially confirmed on September 19 that Colorado is actively accepting these digital currencies as means of payments for taxes, including individual and business income taxes, sales and use taxes, severance taxes, withholding taxes, excise taxes and fuel taxes.

Adding to the same, Polis stated,

"Taxpayers can now select cryptocurrency as a payment option, just showing again from a customer-service perspective how Colorado is tech-forward in meeting the ever-changing needs of businesses and residents."

According to the announcement, only Bitcoin, Ethereum, Bitcoin Cash and Litecoin will be accepted as valid cryptocurrencies. This is because the Colorado Department of Revenue will only accept payments via PayPal, and only the aforementioned four cryptocurrencies are supported through PayPal's personal accounts.

Will the public willingly adopt it?

While Colorado is pushing to make itself a crypto state, the question is, are the people living in that state willing to be a part of it as well. Since the condition of the crypto market is worsening, it begs the question of are these services being launched at the right time. 

For those who have already been a part of the crypto market, the lack of profits might drive them away from using crypto. And the same lack of growth will keep newer users away from cryptocurrencies.

Bitcoin, the king coin, itself is nearing the price levels that it last visited 21 months ago, back in December 2020. Trading at $18,856 at the time of writing, BTC is inching closer to the historically tested critical support line standing at $18,600. 

For investors' investments to turn profitable, BTC needs to climb towards the critical resistance at $24,611, which rejected BTC's climb to $25,000 back in August.

TradingView ChartBitcoin 24-hour price chart

Against this backdrop, unless the Colorado state government provides additional lucrative options to facilitate these services, it might be a while before people begin paying their taxes in cryptocurrencies.

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