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Florida Governor Ron DeSantis recently revealed that the state is working on allowing businesses to pay their taxes in crypto. This would make Florida one of the first US states to attempt accepting digital assets for tax payments.
Pay Your Taxes in Crypto
DeSantis is known to advocate freedom and independence with his policy approach, ranging from covid-19 to the economy. Naturally, he has become a fan of cryptocurrencies like Bitcoin. These assets allow for peer-to-peer transactions with no influence from governments or centralized banks.
By allowing state businesses to start paying crypto taxes, he may accelerate the adoption of digital assets in the region.
“I’ve told the state agencies to figure out ways, where if a business wants to pay tax in cryptocurrency to Florida, we should be willing to accept that,” DeSantis said Tuesday at a press conference, as reported by Bloomberg. “We’re working through that.”
The governor already proposed a program to let businesses pay state fees in crypto this December. His approach mirrors that of Miami Mayor Francis Suarez. The latter is already pushing for both taxes and fees to be payable in Bitcoin at the city level. Suarez has even gone as far as accepting his entire salary in Bitcoin.
Both DeSantis and Suarez agree that US dollar inflation – currently trending at its highest in 40 years – is a pertinent issue. This gives them more reason to take interest in assets like Bitcoin, which has a programmatically fixed supply. As a result, it is immune to debasement.
The only other US State to attempt accepting crypto taxes thus far was Ohio. However, legal issues led to the program’s suspension in October 2019.
Other region’s crypto tax programs often involve an automatic crypto-fiat conversion, rather than holding cryptocurrencies directly in government coffers.
DeSantis: Beware of CBDCs
The same liberty-loving mindset that makes DeSantis a fan of cryptocurrencies leaves him opposed to CBDCs. He drew a distinction between decentralized currencies like BItcoin and federal-level digital dollars as President Biden is pushed to research more deeply in his executive order this month.
“I think there’s a lot of hazards with that, when that’s centrally controlled,” opined the governor. “I worry about the amount of power that would give someone in a central authority to basically be able to shut off access to purchasing certain goods. We’d be in uncharted territory.”
Tom Emmer – a crypto-supportive member of congress – also has his suspicions of CBDCs. He proposed a bill in January to ensure that the Fed cannot issue CBDCs directly to individuals and to ensure consumer privacy should one come about. However, a confirmation of official plans to establish a digital dollar is not available yet.