Since Ohio became the first state in the US to accept bitcoin, the flagship cryptocurrency, for tax payments, only two businesses have reportedly used the cryptocurrency to pay their taxes. This, according to state treasurer Robert Sprague.
Sprague revealed the stats while speaking at a forum organized by the Ohio State Associated Press earlier this month, where he took on questions about the department’s experience accepting BTC payments for taxes. After noting only two businesses used the option, available through the state’s official crypto payment platform OhioCrypto.com, he added:
We’re reviewing how [the program] might be either curtailed or might be expanded, and what our counter-party risk is with that vendor.
While a spokesperson declined to reveal how much the state has received in bitcoin through the program, citing that such information can’t be revealed over financial confidentiality, pro-crypto firm Overstock has revealed it would pay a “portion” of its taxes using BTC.
The slow rate of adoption has seemingly not deterred the state, as it’s still looking to become a major blockchain industry hub. The state revealed it was going to start accepting bitcoin for tax payments in November of last year, in a move headed by its then state treasurer Josh Mandel, who at the time noted it would help Ohio stand out in crypto adoption, adding:
I do see [bitcoin] as a legitimate form of currency.
According to Bitcoin Magazine, businesses have to go through three steps to pay taxes with BTC in Ohio. The first sees them register with the Office of the Ohio Treasurer, while the second one requires them to enter their tax details on the platform, so they can pay using a compatible bitcoin wallet – these include BRD, Mycelium, and the Bitcoin Core client.
The payment is then processed by the Atlanta-based crypto payments processing firm BitPay, and converted into US dollars that are sent to the state treasurer’s office.