Ohio could soon join a growing number of jurisdictions exploring teh use of cryptocurrency for government transactions. State Treasurer Robert Sprague and Secretary of State Frank LaRose are seeking approval to allow Ohioans to pay state fees and services with cryptocurrencies like Bitcoin as early as this fall.

The proposal involves partnering with a third-party company to convert cryptocurrency payments into U.S. dollars,which the state can then utilize. Customers would incur a transaction fee, similar to those associated with credit card payments.

Key Points of the Proposal

• Ohio may accept cryptocurrency for state fees and services as early as this fall.
• Businesses and individuals would pay a transaction fee, similar to credit card transactions, for cryptocurrency conversion.
• Secretary of State Frank LaRose aims to be the first adopter, accepting Bitcoin for business filings.
• This move follows increased cryptocurrency popularity and aligns with other proposed Ohio legislation regarding digital assets.

LaRose championing the Initiative

Secretary of State larose is notably excited about the prospect.He envisions his office being the first to accept Bitcoin for business filing fees. I don’t anticipate that there will be hundreds of thousands of Ohioans that are immediately starting to pay their fees on the Ohio Secretary of State’s website in Bitcoin, but there will be some, LaRose stated, adding, What this does is signal that Ohio is near the forefront of embracing this financial technology. LaRose also disclosed that he personally owns approximately $10,000 in Bitcoin.

Background and Context

The move towards cryptocurrency acceptance comes amid increasing popularity of digital currencies, particularly within certain political circles. During his presidential campaign, Vivek Ramaswamy advocated for policies to reduce cryptocurrency overregulation. Both Sprague and LaRose have endorsed Ramaswamy’s future political endeavors.

Legislative Landscape

Several pieces of legislation related to cryptocurrency and blockchain technology are currently under consideration in Ohio:

• Ohio Blockchain basics Act (House Bill 116): This bill seeks to prevent state and local governments from imposing additional taxes and fees on cryptocurrency.
• Senate Bill 56: this proposal would allow Ohioans to pay taxes and fees using Bitcoin.
• House Bill 713: This bill proposes the creation of a cryptocurrency reserve, an idea that Treasurer Sprague has expressed reservations about.

Previous Attempts and Lessons Learned

This is not Ohio’s first foray into cryptocurrency. Former Treasurer Josh Mandel launched OhioCrypto.com with the goal of allowing taxpayers to pay their taxes in cryptocurrency. Though, the initiative was later discontinued by Sprague, and the Attorney General’s office cited improper setup as the reason.

Sprague emphasized that the current proposal differs significantly from the previous attempt, as it adheres to proper procedures. He also noted the evolving federal landscape,with increased support for cryptocurrency and reduced regulation.

This has come and if you don’t go out in front of it, you’ll get dragged behind the bus.
Robert Sprague, Ohio Treasurer