Under the proposal, state agencies would be authorized to accept cryptocurrency through a payment processor as designated by the treasurer’s office.
COLUMBUS, Ohio — Ohio leaders called on the State Board of Deposit on Thursday to authorize the use of cryptocurrency to pay for state fees and services.
Under the proposal, state agencies would be authorized to accept cryptocurrency through a payment processor as designated by the treasurer’s office.
Cryptocurrency would be assigned as an authorized “financial transaction device” by the State Board of Deposit, a three-member regulatory board made up of the Treasurer of State, Auditor of State and State Attorney General.
“The United States is becoming a global leader in the use of cryptocurrency and digital asset technology, and Ohio should be at the forefront of this emerging economy,” said Ohio Secretary of State Frank LaRose. “My office processes millions of dollars in business incorporation fees every year, and we should be able to accept payment for those services in cryptocurrency.”
Treasurer of State Robert Sprague, who serves as chair of the board, agreed to call a board meeting to adopt an authorizing resolution.
“Since the start of my administration, we’ve been working to modernize the Treasurer’s office and lay the groundwork for the future of public finance in Ohio,” Sprague said. “Authorizing the use of cryptocurrency is just another way to keep up with current practices and we’re doing it the right way by bringing the matter before the Board of Deposit.”
A past payment program allowing Ohio businesses to pay taxes with cryptocurrency did not follow the proper process to be authorized as a financial transaction device, according to a 2019 opinion issued by Attorney General Dave Yost.
The program used a third-party vendor to convert the crypto payment to U.S. dollars for a fee charged to the payer. The vendor also guaranteed payment against any changes in the cryptocurrency’s value during the transaction.
However, the attorney general concluded that cryptocurrency was not formally approved as a financial transaction device and the program was suspended.
“Ohio had the right goals at the time but the wrong process,” said Secretary LaRose. “We now have guidance from the Attorney General on how to do this the right way, and we’re calling on the Board of Deposit to adopt a resolution that allows the state to set this policy in motion. I’ve long been a proponent of digital asset technologies, and my office stands ready to implement a cryptocurrency policy and begin accepting these payments immediately.”
“I look forward to adopting a cryptocurrency payment policy that not only complies with Ohio law but also positions our state as a leader and innovator in the global economy,” Sprague added. “If we’re marketing our state as the place to do business, we need to be ready to do business at the pace of today’s technology.”
