![]() ![]() Soon after he left office, his successor shuttered the program, which In 2018, Ohio’s then-treasurer, Republican Josh Mandel, unveiled a program to let businesses pay some taxes in Bitcoin, the most popular cryptocurrency. pony up in crypto have proven to be busts. dollar or to baskets of goods and services, limiting their volatility, early attempts to let taxpayers in the U.S. While crypto supporters contend that some digital currencies are pegged to the U.S. “The volatility of these instruments will do more damage than a legal response,” he said. ![]() Many cryptocurrencies have wildly fluctuating values, which undermines their practical value as forms of money. Grey, who also works as a law professor at Willamette University in Salem, Oregon, predicted that a bigger problem than regulation would be a lack of interest. ![]() Gears up to more extensively regulate cryptocurrencies, Grey said Congress could simply pass a law banning the practice. He said it is unlikely that courts would actually strike down Wyoming’s proposal on constitutional grounds, in part because of precedent permitting privately issued money and in part because any such ruling would have implications for existing tax credit systems used by states. The Arizona bill, according to Grey, faces a greater risk of being deemed unconstitutional because it seeks to designate a cryptocurrency as “legal tender.” This has broader implications than the Wyoming proposal, which is limited to tax payments. One potential obstacle to proposals like this in Arizona and Wyoming is Article I, Section 10 of the Constitution, which restricts the power of states to issue their own money. The group supports the issuance of digital currencies by central banks as a government-controlled alternative to privately issued or open-source cryptocurrencies. “I see this as much more of a stunt than genuine shakeup,” said Rohan Grey, who serves as research director of the Digital Fiat Currency Institute, a San Francisco-based trade group that represents government bodies and financial institutions. They also argue that Americans, in particular, benefit from the status of the dollar as the world’s reserve currency.īut supporters of the incumbent banking system expressed skepticism that recent state-level proposals would do much to upset the current system, pointing to potential legal and practical hurdles. dollar, Zhou declared.Ĭritics of privately issued and open-source cryptocurrencies argue that if they displace national currencies, they would undermine the ability of national governments and central banks to effectively regulate the economy. “It’s the beginning of the end,” for central banking and the U.S. The Wyoming proposal succeeds, its real significance would be to help legitimize cryptocurrencies as alternatives to the greenback. As American CryptoFed’s name suggests, the group aspires to compete with the Federal Reserve System, which regulates the dollar. “It’s just an idea about how to make the process more seamless and automated,” he said.īut some of the plan’s backers have grander designs. Andrew, a Republican who runs a restaurant business based in Laramie, said he wanted to reduce the paperwork burden of sales taxes. Ocean Andrew, the sponsor of the amendment, which would allow crypto tax payments to be made automatically via digital smart contracts. Merchant Advisory Group’s CEO, John Drechny, declined an interview request.įor retailers, part of the appeal would be convenience, said Wyoming Rep. American CryptoFed, whose founders previously worked on mobile banking platforms, plans to issue a so-called algorithmic stablecoin - a cryptocurrency whose value is pegged to the consumer price index - that can be collected for sales tax purposes.Īlso backed by the Merchant Advisory Group, a trade group for retailers that counts Amazon, Walmart, and the Home DepotĪmong its members. dollar,” said Zhou Xiaomeng of American CryptoFed, a group backing the Wyoming proposal. “We are looking for alternative currencies to compete with the U.S. The Wyoming effort also offers a window into some of the forces vying to shape the future of digital money: namely, big retailers and veterans of the commercial banking industry. But Wyoming has gone further than any other state in passing laws to accommodate cryptocurrency adoption, and backers of the proposal there believe it will be the first state to take a significant step in the realm of tax payments. Both proposals face potential legal and political hurdles. ![]()
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