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Ohio recently took the step of allowing businesses to pay some of their state taxes in Bitcoin (BTC). However, a law professor recently told the Detroit Free Press that this move is nothing more than a "PR stunt".
Being the first-ever state to allow tax payments in cryptocurrency definitely gained a lot of publicity for Ohio as well as for BitPay, the leading Bitcoin payment processor that is increasingly being used for adoption by more high-profile merchants. But it's debatable whether this indicates any kind of real change in the financial system.
Read more: Now you can pay your taxes in Bitcoin (in Ohio)
According to Kevin Werbach, professor of legal studies and business ethics at the Wharton School at the University of Pennsylvania, "There is not a particular advantage in paying your taxes with bitcoin today...The state just wants to signal that it’s 'cryptocurrency-friendly."
Andrew Wu, assistant professor of technology and operations and finance at the University of Michigan's Ross School of Business, has claimed that the volatility of Bitcoin makes it entirely inappropriate for this kind of tax payment. Like many outside the crypto space, he does believe that blockchain technology has potential, and claims that "it makes sense for the states to be friendly to these blockchain start ups. The blockchain technology itself is very, very different".
Read more: UK Parliament Member suggests paying taxes in Bitcoin; Ohio state looks to become the heart of America for blockchain