Ohio Promotes Acceptance of Cryptocurrency Payments for State Government Fees

On September 25th, the Ohio State Board of Deposit gave unanimous approval to select a vendor for processing cryptocurrency payments (including Bitcoin) for the payment of state government fees and services. This is the latest action in the state's integration of cryptocurrency into the public finance system. “Each year, my office processes tens of thousands of transactions. I commend the board for taking bold actions to place us at the forefront of the emerging digital economy,” Ohio Secretary of State Frank LaRose wrote on Twitter on Wednesday. This approval marks the end result of months of efforts since April of this year. At that time, LaRose and State Treasurer Robert Sprague advocated for the board to authorize the acceptance of cryptocurrency payments. The proposal was unanimously passed in May but required final vendor approval, a crucial step that was completed on Wednesday. In a statement, LaRose said, “We are among the top five states in the nation for doing business because we embrace tools, trends, and technologies that attract entrepreneurs.” The Secretary of State noted that his office processes tens of thousands of transactions annually and has received “increasing demands for cryptocurrency payment options.” “I am excited and ready to be the first state government office to offer this service to customers,” he added. After the passage of House Bill 116 in the Ohio House of Representatives last week (providing a partial tax exemption for cryptocurrency holders), State Representative Steve Demetriou (R-Ohio) stated that the next step is to establish a state Bitcoin reserve. Another bill, House Bill 18, known as the “Ohio Strategic Cryptocurrency Reserve Act,” will allow the State Treasurer to invest up to 10% of certain public funds in “high-value” cryptocurrencies.