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In a press release issued on January 3, American internet retailer Overstock.com announced that it would become the first major US company to pay a proportion of their state taxes in Bitcoin. This is a major step forward for crypto enthusiasts who want and foresee a crypto future on the horizon.
Overstock is headquartered in the Utah city of Midvale, near Salt Lake City and primarily sells furniture, home decor, bedding as well as other items. They are known for selling surplus and returned merchandise, but also sell new items.
Overstock will pay their taxes using Bitcoin, through OhioCrypto.com. In November 2018 Ohio became the first state in the US that enables taxpayers to pay their taxes with cryptocurrency, and OhioCrypto.com was launched. The groundbreaking idea was enacted as a way to allow taxpayers more options to pay taxes, as well as a way for the state to pledge their support to blockchain technologies. Overstock.com will pay a portion their taxes via Bitcoin in February 2019.
The option to pay taxes via cryptocurrency actually provides benefits for those who choose to take this path. For example, citizens who go down this route will be charged a network fee, miner fee, and transaction fee, which, while that may sound like a lot, actually works out being less money collectively than the card transaction fee that would otherwise be used.
Overstock CEO and founder Patrick M. Byrne stated in the press release:
“We have long thought that thoughtful governmental adoption of emerging technologies such as cryptocurrencies (when accompanied by non-restrictive legislation over these technologies) is the best way to ensure the U.S. does not lose our place at the forefront of the ever-advancing global economy.”
Josh Mandel, a Republican Politician who is the State Treasurer of Ohio said:
“We applaud Overstock for becoming the first national brand in America to register to pay taxes via cryptocurrency. Their embrace of blockchain technology was ahead of its time and we’re proud to have them join OhioCrypto.com.”
This may spark a trend where more companies look to pay their Ohio taxes with cryptocurrency; however, we are sure Overstock.com are happy that they will go down in American history as the first.