Ohio is poised to make a significant leap in its financial services by accepting cryptocurrencies, including Bitcoin, for state payments. On September 24, Ohio Secretary of State Frank LaRose announced via social media platform X that the State Board of Deposit has approved a vendor to facilitate the acceptance of cryptocurrency payments for various state fees and services.
This milestone follows a concerted effort that began in April, when LaRose and state Treasurer Robert Sprague urged the board to authorize the integration of cryptocurrency payments for state services. The proposal received unanimous approval in May, contingent on the more recent vendor endorsement.
LaRose emphasized the potential advantages of this move, stating, “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.” He noted that his office conducts hundreds of thousands of financial transactions yearly and acknowledged the rising demand for cryptocurrency payment options. “I’m excited and ready to be the first to provide it to our customers,” he added.
While the exact launch date of this initiative and further details about the chosen vendor remain undisclosed, the announcement has ignited enthusiasm within the cryptocurrency community. Paul Grewal, Coinbase’s legal chief, remarked on X, “It’s happening. Government payments in Ohio today. Everything onchain tomorrow. Thank you, ser.”
Once operational, Ohio will join the ranks of Colorado, Louisiana, and Utah as one of the few states to accept cryptocurrencies for state fees and services. Additionally, Ohio is considering further legislative measures that could bolster its relationship with cryptocurrencies. These include potential exemptions from capital gains taxes for cryptocurrency transactions under $200, as proposed in the Ohio Blockchain Basics Act, which has advanced from the state House to the Senate as of June.
Moreover, lawmakers are contemplating a bill that would authorize the state treasurer to create a state strategic cryptocurrency reserve, permitting the investment of up to 10% of public funds into “high capitalization” cryptocurrencies. This potential move underscores Ohio’s commitment to integrating innovative financial technologies into its operations and its willingness to adapt to the evolving landscape of digital currencies.
