Jared Polis, the governor of Colorado, has introduced that the state authorities plans to permit residents to pay taxes in cryptocurrencies as early as summer season 2022.

In a Tuesday CNBC interview, Polis stated crypto holders in Colorado may have the choice of sending tax funds in digital foreign money, which the state would then convert again into fiat. The governor stated that an unnamed middleman would probably deal with the alternate of crypto to fiat.

“We anticipate by this summer season — fairly quickly — to just accept crypto for all of our state tax-related functions,” stated Polis. “Then we plan to roll that out throughout all of state authorities for issues like, could possibly be so simple as driver’s license or searching license inside a couple of months after that.”

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Colorado Governor Jared Polis. Supply: CNBC

The governor added he was “in no way” involved in regards to the potential volatility of cryptocurrencies like Bitcoin (BTC) given the state had no plans to HODL the cash and would immediately convert the funds. Polis cited decreased transaction prices within the state’s potential determination to undertake crypto funds, in addition to the prospect of selling a brand new asset class.

Shortly after taking workplace in 2019, Polis signed the Colorado Digital Token Act into regulation. The laws aimed to exempt tokens with a “primarily consumptive objective” from some securities rules. The governor added State Senator Chris Hansen was additionally engaged on a invoice that will “enable state-created digital tokens to be utilized for state reserve functions.” Hansen launched laws in January that proposed amending the state’s industrial code “to guard possession and management of digital data property generated by agricultural producers in a fashion much like the adjustments adopted by Wyoming.”

Associated: Whereas Washington dithers, Wyoming and different US states mine for crypto gold

Some U.S. lawmakers have proposed addressing any potential regulatory uncertainty round digital property on a state degree, seemingly moderately than ready for a framework from Congress. Earlier this month, a member of the Tennessee Home of Representatives proposed permitting the state to put money into crypto and nonfungible tokens. The state of Wyoming has additionally launched a number of items of laws aimed toward drawing in crypto miners’ companies.