Cryptocurrency will be accepted for tax services for the first time by a US County tax collector, Joel Greenberg.
Bitcoin and bitcoin cash will be accepted as tax payment for various services in Seminole County, US, starting this summer.
Accuracy and transparency are two of the advantages that Seminole County residents will benefit from alongside a reduction in heavy fees.
The payments will be made using BitPay – a blockchain payments provider that will process the payment within one working day, converting the payment into dollars.
At a cost of 1%, BitPay allows users to pay their bills without credit card costs from any platform including computer and mobile devices.
Existing processor charges equated to large costs due to the third-party nature. With the BitPay method however, there is both a reduction in cost alongside an increase in efficiency.
With a step towards digitization, Greenberg believes this will be beneficial to every stakeholder involved.
“The aim of my tenure in office is to make our customer experience faster, smarter, and more efficient, and to bring government services from the 18th century into the 21st century,” he commented.
“The expectation of highly efficient customer service and we should expect the same from our government”
BitPay, founded in 2011, claims it is safer than traditional payment methods due to the verification and recorded nature of the transaction. It argues that traditional credit card fraud is eliminated alongside identity theft risks.
The payment system is not limited to consumer wallets – it enables businesses to send and receive across borders.
“We recognized the potential for blockchain to revolutionize the financial industry, making payments faster, more secure and less expensive on a global scale,” said Jermie Beaudry, head of compliance at BitPay.
“We have engaged our first government agency to accept bitcoin and bitcoin cash by making it easy and seamless for them,” the company said.
Distributed ledger technology, the system behind BitPay, functions using an open, online spreadsheet. Blockchain technology means that when the transaction has been reported within this ledger, it cannot be altered.
BitPay has offices in North America, Europe, South America and has raised over $70m from leading investors.