Colorado is set to become the first state to accept cryptocurrency as payment for state taxes and fees
are proposing laws which, if ratified, would deem cryptocurrency an accepted form of payment statewide, not just for tax purposes.
Governor Polis has long been a vanguard in the intersecting world of cryptocurrency and politics. In 2014, he accepted Bitcoin for campaign donations during his run for the U.S. Congress following a Federal Exchange Commission ruling that went in his favor. Although Colorado will be the first state to officially welcome cryptocurrency payments for taxes, Ohio implemented a similar program for a test run in 2018, which was ultimately deemed unsuccessful and abandoned in 2019.
Outside the U.S., El Salvador has been on a similar path for the better part of nine months. In June 2021, the country's Legislative Assembly passed a law that made Bitcoin legal tender, allowing it to be used for everyday purchases. Critics of accepting cryptocurrency highlight the volatility of digital currencies and inflation fears as reasons the initiative could cause economic destruction in El Salvador.