Residents Could Pay Taxes in Bitcoin as Arizona Senate Passes a Bill

Last month, the Arizona Senate submitted a bill to allow payment of taxes in bitcoin. This was a bold move by the lawmakers given the current state of volatility of cryptocurrencies. However, on 8^th February, the senate gave that specific bill a go-ahead by voting for it. Although it has to pass the house of representatives to become law, it is a great step towards the state of Arizona becoming a haven of the blockchain technology.

Recently, bitcoin and other cryptocurrencies experienced the biggest dip ever seen, since November. This was due to the negative news. With Arizona lawmakers being on the frontline in terms of welcoming the crypto technology, a lot can be expected.

Blockchain technology will receive a greenlight, locally

Once it becomes law, the Arizona taxpayers will be able to make payments using bitcoin and other coins. In return, the taxman will exchange cryptocurrencies into USD within a period of up to 24 hours, after the payment is done. This will set standards, throughout the country, when it comes to the blockchain technology as it will be endorsed locally throughout the state.

Users of the crypto technology will find a safe haven in Arizona

With the many uncertainties looming on the direction cryptocurrencies are taking, this move will come as a wakeup call to the users of the technology. It will clear doubts and offer a soft landing, not only to investors, but also to those who are yet to decide whether to invest or not. The technology will have an impact on both the investment in cryptocurrencies and service delivery, including healthcare.

Volatility of the cryptocurrencies

This will definitely come up in the House of Representatives when the bill is tabled. The volatility of bitcoin and altcoin prices makes this move risky. The prices of digital currencies fluctuate every other day especially with the negative news. However, since the Department of Revenue in Arizona will have a day to exchange into USD, it may work in the long run. Also, the amount they get after the conversion will represent the actual value of the tax, interest or penalties the resident pays to the state.

It will not be much surprise if the bill is signed into law. This is because, earlier last year, the state of Arizona signed into law a blockchain bill consenting smart contracts and blockchain signatures. As such, this may improve the performance of the crypto market for the better.