By Young Earner Editors
Feb 2, 2022
Lawmakers in the states of Wyoming and Arizona put forward proposals to accept cryptocurrency as tax payments.
Excitement among crypto enthusiasts rises as lawmakers in Wyoming and Arizona put forward proposals to accept Bitcoin, the largest blockchain-based digital asset, as tax payments.
Both states will face legal and political difficulties. An article by CoinDesk further states that, "the U.S. Constitution doesn't allow individual states to create their own legal tender." However, the adaptation of cryptocurrencies would automate the sales and use tax submission process through smart-contracts, making this process more convenient for merchants.
The Wyoming bill is supported by the Merchant Advisory Group (MAG). As stated by the MAG, "The MAG represent over 150 of the largest U.S. merchants accounting for over $4.8 Trillion in annual sales at over 580,000 locations across the U.S. and online. Roughly $3.5 Trillion of those sales and over 100 billion card payments are electronic, representing approximately 62% of total U.S. card volume."
John Drechny, Merchant Advisory Group CEO, believes that, "MAG member merchants in Wyoming currently represent more than 50% of credit and debit card transactions and play a critical role in submitting sales and use taxes to the state."