Connect with us

Bitcoin

Bitcoin [BTC] and other cryptocurrencies to be used to pay taxes in New Hampshire; sub-committee approves bill

Jibin M George

Published

on

Bitcoin [BTC] and other cryptocurrencies to be used to pay taxes in New Hampshire; sub-committee approves bill
Source: Pixabay

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.





Subscribe to AMBCrypto’s Newsletter


News

Facebook’s Libra ‘sounds an awful lot like Proof-of-Stake’ and will ‘run into Ethereum’s problems,’ claims Jameson Lopp

Avatar

Published

on

Facebook's Libra 'sounds an awful lot like Proof-of-Stake' and will 'run into Ethereum's problems' claims Bitcoin engineer, Jameson Lopp
Source: Unsplash

Facebook’s “The Libra Blockchain” whitepaper has created quite a frenzy, not only in the cryptocurrency ecosystem, but also with U.S. government officials. Some people claim that Libra is not a blockchain, while others claim that it is going to kill Ripple, XRP and other similar blockchains. However, Jameson Lopp had a different view, claiming that the Libra blockchain has not solved massive problems that Ethereum has.

Lopp in his Medium article dissected the whitepaper and stated that the Libra Blockchain will be controlled by a set of authorities in a top-down fashion and that it will eventually move from a permissioned to a permissionless blockchain. The blockchain will offer a global currency – Libra coin, which will be backed “with a basket of bank deposits and treasuries from high-quality central banks.”

Since the whitepaper mentions that it will eventually move towards a permissionless and an open system, Lopp speculates that it “sounds an awful lot like Proof of Stake” and like Ethereum, it will face the same problems. He said,

“Apparently the plan is to open up membership after 5 years and hopefully they’ll have figured out Proof of Stake by then… I expect they’ll run into the same problems as Ethereum!”

Lopp added that “Calibra Wallet,” which is used to store the Libra coins, is the only wallet that can hold the coins for now and that it will require strict KYC/AML compliance. Since the blockchain conveniently replaces “stablecoin” for “resources,” Lopp speculates that it will concentrate more on smart contracts since it is built on a custom smart contract programming language called “Move”.

In addition to facing similar problems as those faced by Ethereum, the Libra Blockchain is facing more issues from a political and a regulatory standpoint. There was a lot of speculation even before Facebook dropped the whitepaper.

According to Reuters, United States House Financial Services Committee Chairwoman Maxine Waters issued a statement to halt/pause any and all developments on the project, until and after the Congress and other regulatory bodies have finished reviewing it. A senior Republican, Patrick McHenry, is also calling for a hearing on Facebook’s new cryptocurrency.





Subscribe to AMBCrypto’s Newsletter


Continue Reading

Trending