North Carolina to Enable Tax Payment Using Crypto

North Carolina plans to allow people to pay their state taxes using cryptocurrency. The move is part of a new bill called the Digital Asset Freedom Act, House Bill 920. If passed, it would make North Carolina one of the few states in the United States that officially accepts crypto for government payments.

The bill shows that the state is becoming more open to new technologies like blockchain and digital currency. Residents could pay taxes using approved cryptocurrencies instead of using only traditional channels like cash or credit cards. This could be helpful for people who already invest in crypto or prefer using digital assets over regular money.

Criteria for Eligible Cryptocurrencies

The bill sets strict rules to ensure that only safe and reliable cryptocurrencies are used for tax payments. First, the cryptocurrency must be worth at least $750 billion in total market value. It should also have a daily trading volume of over $10 billion, showing it is widely used and stable. The digital currency must have been around for at least ten years, proving it is well established in the market.

In addition to these requirements, the cryptocurrency must be decentralized. This means no single company or person controls it. These rules ensure that only strong and trusted cryptocurrencies can be used to pay taxes. This could help prevent scams or unstable currencies from being used to pay taxes. However, the bill does not specify any particular cryptocurrencies, like Bitcoin, allowing other digital assets that meet the requirements to be used.

If the bill becomes law, it could be more convenient for people who hold cryptocurrency and show that the state is willing to embrace modern technology.

More Bitcoin Adoption

Alongside North Carolina’s plan to accept cryptocurrency for tax payments, there’s growing national interest in using Bitcoin in government operations. Senator Cynthia Lummis is reintroducing the Bitcoin Act, a bill allowing the U.S. government to hold Bitcoin officially.

The bill aims to create clear rules for Bitcoin, helping the government manage and use cryptocurrency more efficiently. This shows how Bitcoin and other cryptocurrencies are becoming more accepted in government systems, highlighting their increasing role in finance.