The Ohio State Board of Deposits has approved a vendor to facilitate the acceptance of crypto payments for state fees and services. The initiative, which was announced on Thursday, comes as the state continues to push forward with its integration of digital assets into public finance.
The approval comes after a proposal submitted by Ohio Secretary of State Frank LaRose and Ohio Treasurer Robert Sprague in April to push the state to allow crypto payments. At the time, LaRose mentioned that the Secretary of State’s office has one of the largest fee-for-service offices, processing nearly half a million payment transactions annually.
Ohio records increased demand for crypto payments
The initiative was also commended by the Ohio Secretary of State, noting that it will position Ohio at the forefront of the emerging digital economy. He also argued that the initiative is necessary, considering his office handles hundreds of thousands of transactions each year. According to Sprague, using digital assets is just another way to keep up with current financial practices.
Before the board approved a vendor contract, the proposal passed with a unanimous vote by the State Board of Deposit in May. “There’s a reason why we now rank among the top five states in the nation to do business. It’s because we’re not afraid to embrace the tools, trends, and technologies that incentivize job creators to come here,” Frank LaRose, Secretary of State for Ohio, said.
LaRose mentioned that the large number of transactions processed in his office has seen residents push for a cryptocurrency payment option. He noted his excitement, saying he is ready to be the first to provide it to the state’s customers. Coinbase CLO, Paul Grewal, responded to the announcement by thanking LaRose for bringing government payments on-chain. He also hinted that the state’s payments will be on-chain by Friday.
Ohio House Bill 116 remains pending in Senate
In June, the House of Representatives also established the Ohio Blockchain Basics Act, which prohibits state and local governments from restricting the use of cryptocurrencies as payment. The legislation, signed into law by Governor Mike DeWine, also limits the government from interfering with individuals’ use of digital asset wallets.
The House said the legislation will allow the state’s crypto asset holders to easily use their digital currencies to pay for goods and services in Ohio. According to the report, the bill also prohibits local governments from imposing additional taxes or fees on individuals using digital assets for legal services and would exempt transactions under $200 from capital gains taxes.
The Senate is yet to approve House Bill 116, following a 70-26 vote in the House. CEO of the Satoshi Action Fund, Dennis Porter, stated that the legislation is a clear signal that lawmakers are championing innovation in Ohio. He added that he was optimistic the momentum would carry forward in the Senate. Porter said he looks to see Ohio emerge as a national leader on Bitcoin and digital asset policy.
State Representative Steve Demetriou sponsored the legislation and said the state is ready to show the country that it’s ready to embrace the future of the U.S. economy, blockchain technology, and digital assets. The government official also claimed that Ohio will become the first state to create a common-sense regulatory framework for the crypto industry once the bill gets approved.
The post Ohio moves forward with crypto payments for state fees first appeared on Coinfea.
