Florida Plans to Allow Businesses to Pay Their Taxes in Cryptos

Bitcoin Pay

Cryptocurrency has always been a hot selling topic. Since the launch of Bitcoin in 2009, investors from across the globe have been looking at how this currency model can be leveraged. The overall market capitalization of cryptocurrency has increased to $2 trillion as of Q4 2021. This is a substantial increase considering that this currency has still not received legal status. Visit here for more information.

Cryptocurrencies work on a decentralized finance model and utilize blockchain technology to undertake transactions. This means every transaction is broken down into a single ledger and stored in user computers. The transactions are also stored on a public ledger providing transparency and security. Additionally, there is no intervention from third-party agencies to complete the transactions. There is no central bank, the regulatory agency involved in completing user transactions. This investment model has attracted many young and experienced investors. There have also been studies going on to understand factors that have attracted larger female investments in this model. Despite the vulnerabilities around this investment model, the craze for cryptos continues to rise.

Global acceptance of cryptocurrencies

Many countries have been following this investment model. There have been steering committees set up exclusively to study cryptocurrencies. These working groups work head-on to understand the pros and cons of this investment model along with its legal adoption. El Salvador became the first state to accept Bitcoin as a legal currency. The state allowed users to buy and sell goods and services in exchange for Bitcoin.

Many popular online platforms including shopping sites, gaming, automobile, and merchandise today accept cryptocurrency payments. A user can buy Microsoft products using cryptos. Additionally, if you have Dogecoin in your wallet and if you are a Tesla fan then you can buy their merchandise. The website has configured its online payment system to accept Dogecoin payments. Selected merchandise is made available to users to pic using cryptos.

The recent addition to the country that adopted cryptocurrency in India. In the recent budget, session submitted it was announced that the country shall be levying a 30% tax on crypto investments. Additionally, the government also clarified that the taxes shall be applicable on all crypto gains. Also, gains and losses will be treated separately. Any gains on cryptos cannot be offset by losses. If a user is willing to transfer crypto to another then 1% TDS shall be levied on the same.

Florida coming up with their new tax options

Following the suit of India, there is another country that’s now added to the list. In a recent communication, the Florida governor has clarified that the country is looking at options to accept taxes in cryptos. This move will mark an important milestone for cryptos. The state agencies are advised to work on a solution to understand how this investment model can take shape to allow payments. The only criterion here shall be for the business units or agencies to have their companies registered in the state itself.

Is this move a positive sign for crypto investments?

Miami, a popular place in Florida is already famous for crypto investments. The state Mayor had taken considerable steps to accept cryptocurrency as an official payment model. The current mayor even takes home his salary pay-check using Bitcoin. Hence, the current move on accepting cryptos for taxes doesn’t come through as a surprise. Additionally, there have also been crypto companies that have currently focused their operations in Miami. The state already has lenient laws thereby allowing for a crypto-friendly trading environment.

The government has always shown its interest in Bitcoin and cryptocurrencies. The country had released its native currency called central bank digital currency. But both the coins have differences in their working model. Cryptocurrencies are decentralized while CBCD is centralized. There is control and complete monitoring by the government on this investment model. Going forward, if the government decides to make sure that all transactions are through cryptos then this model will have complete control over the investment model.

Along with Florida, other US states are also gearing up for making changes in their policies. We need to wait and watch how cryptocurrencies may take over the world of the payments system.

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The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.