This week, Ohio became the first U.S. state to accept bitcoin for tax payments from businesses. Eventually, the payment form will be open to individual filers as well. Could more states follow suit in embracing the cryptocurrency as a legitimate form of currency?
Associate professor Lee McKnight in the School of Information Studies at Syracuse University teaches blockchain management. He says Ohio’s move to accept bitcoin is well timed, but says the cryptocurrency tax portal is really more for bragging rights.
McKnight says:
“Ohio’s move to accept bitcoin for tax payments is well-timed. If Ohio started one week earlier, the state would have already lost 20 percent, as cryptocurrency prices plummeted.
“For businesses which have been holding cryptocurrency assets for the past year, taking the 80 percent loss in value from market peak December 2017 – and deducting from their Ohio state business taxes to the extent permitted by law – may also make sense. As a fraction of total state tax receipts however, it is likely to be a low number of businesses that choose to make payments this way. So, Ohio’s supposed cryptocurrency tax portal is really just a sideshow for publicity and bragging rights.
“The real innovation and real market opportunities for application of blockchain technology are found mainly in non-transparent corners of businesses and governments worldwide. Following Ohio into explicitly backing use of cryptocurrencies is not the right way to think of blockchain adoption and innovation for economic growth for states. Especially since many European and Asian nations, and Canada, are well ahead of the United States, generally speaking.
“Undoubtedly, more U.S states and the federal government will work on catching up.”
To request interviews or get more information:
Daryl Lovell
Media Relations Manager
Division of Marketing and Communications
T 315.443.1184 M 315.380.0206
dalovell@syr.edu | @DarylLovell
820 Comstock Avenue, Suite 308, Syracuse, NY 13244
news.syr.edu | syracuse.edu
Syracuse University
Those looking up at the sky in northern U.S. states and most of Canada may catch a glimpse of the northern lights this week. Sam Sampere is a physics lab manager at Syracuse University’s College of Arts and Sciences. Below,…
Eight countries in the European Union are pushing for at least 25 percent of the next EU budget to go towards projects that will combat climate change. The proposal is being discussed at a European summit this week Matthew Huber…
Today, the LIGO Livingston detector and VIRGO detector captured another binary neutron star merger Stefan Ballmer is an associate professor of physics at Syracuse University’s College of Arts and Sciences. Below, he answers four key questions about the LIGO/VIRGO detection,…
The 145th running of the Kentucky Derby will take place on Saturday, May 4 in Louisville, Kentucky. Rodney Paul is a sports economist and professor at the Syracuse University David B. Falk College of Sport and Human Dynamics. Paul says:…
SYRACUSE, N.Y. – As the retail industry’s brick and mortar stores continue to struggle against the growing online shopping trend, commercial real estate is now facing new financial challenges. In the wake of a recent report that DestiNY USA, a…
If you need help with your subscription, contact sunews@syr.edu.
