Focus | The U.S. Senate approves the use of Bitcoin to pay taxes in Arizona, what does it mean!

Focus | The U.S. Senate approves the use of Bitcoin to pay taxes in Arizona, what does it mean! According to Finance Magnates, Arizona, USA...

According to Finance Magnates, Arizona, USA, seems to be the next base station for the development of virtual currencies in the United States. Currently, the U.S. Senate has passed a regulation allowing taxpayers in the state to pay in Bitcoin. In the future, the range of acceptable payment currencies for this digital currency may be expanded.

Although the entire promotion process is still in progress, it has now entered the final approval process. It is reported that this new regulation is attached to Senate Bill 1091 and was introduced in January 2018. It was approved by the Senate Finance Committee with a vote of 4:3 on January 24. It was then officially passed by the Senate with a vote of 16:13 on February 8. One member abstained, but it did not affect the result.

With the passage of this regulation, it is expected that companies will use virtual currency to pay taxes on a large scale by 2020. The Arizona Department of Revenue will then be responsible for converting the coins to U.S. dollar value within 24 hours of receiving the virtual currency payment. Of course, since the price of virtual currency tends to be unstable, once the government accepts virtual currency, it needs to bear the risk of price shrinkage.

Jeff Weninger, a Republican representative from Arizona and a supporter of this regulation, believes that this move will make the United States advance in blockchain technology innovation. This measure will send a signal to the United States and the world that Arizona will be the home of future blockchain and digital currency development.

Of course, in addition to Arizona, some places in other countries have also started similar measures very early. For example, in 2015, the Isle of Man in the United Kingdom similarly promoted the practice of paying taxes in Bitcoin.

Last week, Christopher Giancarlo, chairman of the Chicago Commodity Futures Trading Commission CFTC, also supported the development of the virtual currency market and said that the young next generation is currently the main investor in such assets. The listing of Bitcoin futures trading products on Chicago's two major exchanges also marks the beginning of the United States' inclusion of this product into the mainstream financial market.

Although U.S. lawmakers tend to accept Bitcoin and other virtual currencies, China’s ban on the construction of websites for virtual currency transactions expresses the opposite attitude.

Last week, India also stepped up its legislative process in this field.