On the one hand, the government loves the idea of a cashless society where it can track every penny you spend… so that it can get its fair share.
On the other hand, cryptocurrencies aren’t government-sanctioned and regulated. So that makes them a potential tool of tax evaders.
Arizona may shift the thinking, though. The state government has a bill on the floor that, if passed, would allow Arizona residents to pay their state taxes using bitcoin, arguably the most well-known of cryptocurrency options.
The state has another bill that will recognize bitcoin as a currency rather than a commodity (its current legal status).
Opponents of the bills say that they are being pushed forth solely to please special interest groups, and that they will put the state’s financial health in jeopardy, since Bitcoin values can fluctuate wildly.
Said one representative, indicating the U.S. dollars should be how people pay taxes: “These are American dollars. They’re good enough for me.”
One thing is for sure. We live in interesting times.