Governor Polis of Colorado announced that the state would be the first to accept cryptocurrency as a tax payment. This announcement is the latest development in Colorado’s efforts to be a leader in blockchain innovation.
State officials are working with a payment provider to accept crypto payments on behalf of the government. When the payment provider receives the taxpayer’s cryptocurrency, it deposits the equivalent dollar amount into the state’s account.
“It’s like credit card payments, with the bonus that there are no returned payments.”Gov Polis
Concern for cryptocurrency impact on the environment
While Colorado government officials think cryptocurrency is a critical part of the state’s overall innovative ecosystem, residents have voiced concerns about the impact on the environment.
“Do you think this is the right move knowing the number of carbon emissions released by mining? Bitcoin mining alone produces ~23 million tons of CO2 emissions/year. Not a good look for a state that brags of its sustainability and beauty.” a response to the governor’s Instagram post.
And another user adds, “crypto is extremely carbon-intensive. I expect better from the state of Colorado, which is supposed to be a steward of our environment.”
These voices for environmental concerns need are valid. It’s true; crypto can be taxing on the energy sector. However, crypto leaders are evolving cryptocurrency into a less impactful and making a carbon-neutral state possible.
Crypto Climate Accord
The Crypto Climate Accord is an organization working towards decarbonizing blockchain technology faster than any industry has before. Their goal is to #MakeCryptoGreen by 2030. They are doing so by collaborating closely with blockchain developers and 250 supporting organizations and individuals.
The Crypto Climate Accord isn’t the only organization working on making crypto green. For example, the NFT marketplace Immutable X and digital collectibles ECOMI/VeVe have created carbon-neutral products from initial conception.
With all of that said, I am looking forward to the progression of crypto adoption within Colorado. And for the environmentalists, this is a great time to get involved with the government to help ensure the adoption of crypto is environmentally healthy. We must ensure that the development of crypto is beneficial for the people, the planet, and profit.