Overstock To Use BTC To Clear Tax Obligation In Ohio, US
Overstock.com recently announced its intention to pay some of its state – owned business taxes in Bitcoin using the newly announced government crypto payment platform.
The online retailer based in Utah has announced plans to pay its Ohio Commercial Activity Taxes in Bitcoin using the official OhioCrypto.com payment platform. Bitcoin can be used by companies to pay 23 different types of government taxes, ranging from tobacco and cars to sales taxes.
Overstock has already established its reputation as one of Bitcoin’s earliest corporate adopters. In 2017, the company extended its support to other altcoins and launched the Medici Ventures blockchain fund.
“We have long thought that thoughtful governmental adoption of emerging technologies such as cryptocurrencies…is the best way to ensure the U.S. does not lose our place at the forefront of the ever-advancing global economy,” said Overstock CEO Patrick Byrne. “We are proud to partner with forward-thinking governments and officials like Ohio and Treasurer Mandel to help usher in an era of trust through technology for our nation’s essential financial systems.”
It is also a feather for the head of a state that was eager to prove itself as a starting point for blockchain technology, having supported several start-up initiatives in the leading cities of Ohio.
Ohio Treasurer Josh Mandel “We applaud Overstock for becoming the first national brand in America to register to pay taxes via cryptocurrency. Their embrace of blockchain technology was ahead of its time and we’re proud to have them join OhioCrypto.com.”
The taxpayer platform, however, makes it clear that “at no point will the Treasurer’s office hold cryptocurrency.”
Instead, tax payments made via Bitcoin are processed “through our third party cryptocurrency payment processor partner BitPay, [and] are immediately converted to USD before being deposited into a state account.”
This could be a bit disappointing for those maximalists who hoped for real state adoption. But it is still a score for Bitpay, a provider of crypto payments that proves its usefulness to both crypto and non-crypto users.
As many economists, including Paul Krugman, have pointed out, the “use case” for fiat pays taxes: “fiat currencies have the underlying value because men with guns say they do.”
The fact that at least a few men with guns recognize that Bitcoin could have value is another step towards official recognition–or even adoption.
The Ohio administration is happy to disclose the connection. “Ohio became the first state in the United States to accept cryptocurrency, and one of the first governments in the world. From mom and pop coffee shops to Fortune 100 companies, businesses now have the ability to pay their taxes with OhioCrypto.com.”