The State of New Hampshire took a step forward in the recognition and adoption of cryptocurrency as a legitimate means of payment and medium of exchange when its House sub-committee approved a bill that accepted Bitcoin and other cryptocurrencies for taxes. The bill had been introduced early in January by U.S Representatives Dennis Acton and Michael Yakubovich.
The development adds to the progressive recent history of U.S States, all of whom have been positioning themselves as the most cryptocurrency and blockchain friendly states in the United States. Only recently, the state of Wyoming had passed a bill that accords Bitcoin and other cryptocurrencies the same legal status as money.
The bill, HB 470, was passed unanimously by the sub-committee and will now move on to the State’s Administration Committee for a further round of voting. If the bill finds approval there as well, the state of New Hampshire, the ‘Free State’, will join the state of Ohio as the states that accept cryptocurrency as forms of tax payments. However, before being brought into force, the State Treasurer will be required to provide the State’s governor and the Speaker of the House, among others, with a roadmap of how New Hampshire means to implement the bill in the state.
The bill in question before the New Hampshire Sub-committee not only allows State agencies to accept cryptocurrency as payment for any taxes but also recommends that tax payments made in Bitcoin or any other cryptocurrency be converted to fiat to alleviate the risk of volatility that the cryptocurrency market is susceptible to.
The passage of the bill in the sub-committee is also a victory for the State itself as a similar bill was voted down by New Hampshire’s House of Representatives in January 2016. The development will also be an impetus for states such as Indiana where a similar bill, HB 1683, aims to bring an amendment to the tax code that in effect, allows the acceptance of virtual currencies for the payment of taxes and penalties, among others.