Ohio became the first US state to allow taxes to be paid in Bitcoin

On November 26, 2018, Ohio made history by becoming the first U.S. state to allow businesses to pay a variety of taxes with Bitcoin.
 

The initiative was facilitated through the launch of a dedicated portal, OhioCrypto.com, where businesses could register and make tax payments using Bitcoin. The process involved three steps: registration, entering tax details, and payment through a compatible crypto wallet.
 

All tax payments made in Bitcoin were processed by the Atlanta-based bitcoin payments processor BitPay, which converted the bitcoins to dollars for the Treasurer’s office. This setup minimized the state’s exposure to the volatility of Bitcoin’s price.
 

Businesses in Ohio were able to pay an array of taxes using Bitcoin, including tobacco sales tax, employee withholding tax, and public utilities tax. The state treasurer’s office was clear that, while the facility was initially available only for businesses, it was expected to be extended to individuals in the future.
 

The move came at a time when other U.S. states were also considering similar initiatives. However, Ohio was the first to successfully implement such a system, despite previous proposals in states like Arizona, Georgia, and Illinois facing hurdles due to legislative challenges or a lack of understanding about cryptocurrency.