Wyoming seeks to enable crypto tax payment

Wyoming has proposed legislation seeking to enable residents to pay their taxes with digital currencies.

It is another step toward the state realizing its ambition of becoming a western crypto capital.

The proposal is a double-edged sword as it ushers in a new and arguably convenient way to participate in the financial system but is arguably also a step towards eroding the supremacy in the US dollar. Wyoming’s proposal would be applicable to sales and use taxes only.

Wyoming doesn’t intend to limit the payment options to any specific cryptocurrencies. American CryptoFed, a group backing the Wyoming push towards crypto digitalization, has said that it’s looking to back the state to seek cryptocurrencies alternative to the US dollar.

The state has a history of defying the status quo and pushing harder for crypto. In 2021, Senator Cynthia Lummis criticized the Federal Reserve for being too slow on crypto regulation.

Another backer in the state is the Merchant Advisory Group, which represents retailers such as Amazon, Walmart and Home Depot among others.

Many retailers believe that rolling in crypto would lead to convenience for consumers and their own operations.

“It’s just an idea about how to make the process more seamless and automated”, said Wyoming State Representative Ocean Andrew who is sponsoring the amendment that would see crypto tax payments become a reality.

However, not everyone is looking to convenience alone. The American CryptoFed wants to take crypto to the next level and make it compete with the Federal Reserve and the US dollar.

Zhou Xiaomeng, a member of American CryptoFed, has said that what is happening in Wyoming is “the beginning of the end” for the US dollar as a central currency.

However, observers who endorse the status quo in finance are skeptical that Wyoming’s proposal may do much to upset the established order.

Wyoming has previously passed sports betting laws allowing companies in the state to begin accepting wagers in crypto, becoming the first state in the US to do so.

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Source

Updated: 02/03/2022 — 22:00