Crypto has only been used to pay 0.005%, or just under $57,000 of the 11 billion dollars collected by Colorado in income taxes since 2022.
In September 2022 the State of Colorado started accepting crypto-based payments for tax purposes, as per a new policy implemented by Governor Jared Polis.
But figures are shared. Colorado Newsline Colorado Department of Revenue revealed that, in the year 2022 alone, only eight payments made using crypto totaled only $16,426.
The total then rose to $23,241 and 22 payments in 2023 before falling again to $17.544 in 2024 despite 48 payments.
Colorado was the first to accept cryptocurrency for payment of state taxes, under Governor Jared Polis’ leadership, said Elizabeth Kosar. Director of Communications of the Colorado Department of Revenue. Colorado Newsline.
Kosar clarified, too, that Colorado does not receive crypto. Instead, taxpayers use PayPal Cryptocurrencies hub to convert digital assets in U.S. dollar at the time of payment.
The information could potentially discredit any idea that crypto payments are a significant part of American society, even though research suggests that 20 percent of American voters own or have used cryptocurrency at one time.
Bitcoin enthusiasts aren’t shocked that Coloradans don’t use cryptocurrency to pay taxes, considering that tokens that have been around for a while such as Bitcoin They are more like stores of wealth than exchange mediums.
Lou Kerner founded the Web3 community CryptoMondays. Decrypt.
Bitcoin’s price has increased by approximately 320% since September 2022. The cryptocurrency registered positive returns for the years of September 2023 (30%), and September 2024 (125%).
Louisiana also accepts cryptocurrency for payment of various fines and services.
Detroit is also going to accept tax payments using digital assets from this middle of the year. This will be done by the same PayPal-based conversion service as used in Colorado, Utah and Louisiana (while Louisiana uses Bead Pay).
Cryptocurrency ownership is on the rise in many countries. It’s possible to expect that states will accept crypto for tax payments.
Kerner is one of the few commentators who doubt that Bitcoin or other store-of value tokens will be used for a substantial percentage in crypto-based tax payment.
Over time, stablecoins are likely to become the preferred way for people to conduct transactions. “It's just more efficient for everyone.”
