The Ohio State Board of Deposits, on Thursday, approved a vendor to facilitate the acceptance of cryptocurrency payments for state fees and services. The initiative comes as the state has pushed to integrate digital assets into public finance.
The approval stems from efforts by Ohio Secretary of State Frank LaRose and Ohio Treasurer Robert Sprague in April to push the state to allow crypto payments. LaRose noted that the Secretary of State’s office has one of the largest fee-for-service offices, processing nearly half a million payment transactions annually.
Ohio sees high demand for a crypto payment option
Ohio’s Secretary of State commended the board for taking action to position Ohio at the forefront of the emerging digital economy. He also argued that the initiative is necessary since his office handles hundreds of thousands of transactions each year.
Sprague acknowledged that using digital assets is just another way to keep up with current financial practices. Before the board’s approval of a vendor contract, the proposal passed with a unanimous vote by the State Board of Deposit in May.
LaRose revealed that the large number of transactions his office processes has pushed a growing demand for a cryptocurrency payment option. He said he’s excited and ready to be the first to provide it to the state’s customers.
Coinbase CLO, Paul Grewal, responded to the announcement by thanking LaRose for bringing government payments on-chain. He also hinted that the state’s payments will be on-chain by Friday.
Ohio’s House Bill 116 awaits approval from the Senate
In June, the House of Representatives also established the Ohio Blockchain Basics Act, which prohibits state and local governments from restricting the use of cryptocurrencies as payment. The legislation, signed into law by Governor Mike DeWine, also limits the government from interfering with individuals’ use of digital asset wallets.
The House said the legislation will allow the state’s crypto asset holders to easily use their digital currencies to pay for goods and services in Ohio. According to the report, the bill also prohibits local governments from imposing additional taxes or fees on individuals using digital assets for legal services and would exempt transactions under $200 from capital gains taxes.
The Senate is yet to approve the House Bill 116, following a 70-26 vote in the House. CEO of the Satoshi Action Fund, Dennis Porter, stated that the legislation is a clear signal that lawmakers are championing innovation in Ohio. He added that he was optimistic the momentum would carry forward in the Senate. Porter said he looks to see Ohio emerge as a national leader on Bitcoin and digital asset policy.
State Representative Steve Demetriou sponsored the legislation and said the state is ready to show the country that it’s ready to embrace the future of the U.S. economy, blockchain technology, and digital assets. The government official also claimed that Ohio will become the first state to create a common-sense regulatory framework for the crypto industry once the bill gets approved.
LaRose supports the Ohio Blockchain Basics Act, which would establish a state Strategic Crypto Reserve funded by portions of Ohio’s investment earnings. He revealed in May that the Treasurer would invest the fund in bonds, crypto exchange-traded products, or digital assets with a market cap of at least $750 billion over the previous year.
The state’s official also cited President Donald Trump’s Working Group on Digital Asset Markets, established after his inauguration to make America the crypto capital of the world.
At the time of publication, 47 states have introduced Strategic Bitcoin Reserve (SBR) bills. The Bitcoin Laws register shows that 26 states currently have proposals under consideration. States like Arizona, Florida, California, Texas, and Wyoming are also considering new crypto regulations.
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Source: https://www.cryptopolitan.com/ohio-crypto-payments-sate-fees/
