Would Bitcoin be stable enough to accept and maintain? Serious question. It seems like the state would have to immediately exchange the Bitcoins for dollars, which costs money and would have a very specific impact on the market (maybe that's the point?).
What sensibly-run organization would choose a scheme where their revenue would be exposed to such large fluctuations, as opposed to the dollar? It's nuts.
I suspect they would cash out immediately. After all the taxes are denominated in USD. The article mentions that the state wouldn't pay any fees though, that's the part I'm really curious about.
The bill specifies that the plan must include the use of "an appropriate third party payment processor that will process bitcoin transactions at no cost to the state."
This doesn't mean that there would be no fees, it means that the payment processor could only charge fees to the taxpayer, not the State.
Comments
Would Bitcoin be stable enough to accept and maintain? Serious question. It seems like the state would have to immediately exchange the Bitcoins for dollars, which costs money and would have a very specific impact on the market (maybe that's the point?).
What sensibly-run organization would choose a scheme where their revenue would be exposed to such large fluctuations, as opposed to the dollar? It's nuts.
I suspect they would cash out immediately. After all the taxes are denominated in USD. The article mentions that the state wouldn't pay any fees though, that's the part I'm really curious about.
The bill specifies that the plan must include the use of "an appropriate third party payment processor that will process bitcoin transactions at no cost to the state."
This doesn't mean that there would be no fees, it means that the payment processor could only charge fees to the taxpayer, not the State.
BitPay currently offers this to merchants and non profits so it may not be that much of an ask.
If they cash out immediately, we'll know that there will be one large buyer around April 15. Wouldn't that enable collusion in the market?