A new bill could make Ohio the first state to mandate cryptocurrency for tax payments and authorize public entities to invest in bitcoin. The proposed legislation, introduced by Senator Niraj Antani, would reshape Ohio’s approach to digital assets, potentially setting a precedent for state financial systems.

Ohio Senator Introduces Cryptocurrency Bill

To make it mandatory for the state to take cryptocurrencies as payment for state taxes and levies, a senator from Ohio has presented a bill. Also included in the bill is the option for the state pension fund and public universities to invest in bitcoin.

Public Entities Could Invest in Bitcoin

A press statement states that the measure was introduced by Niraj Antani on September 30.

By June 30 of each year, the state tax commissioner would be tasked under the measure with determining which cryptocurrencies will be officially recognized.

State Commissioner to Approve Accepted Cryptocurrencies

“A governmental entity shall accept cryptocurrency, as approved by the tax commissioner […], for the payment of any tax, fee, cost, charge, assessment, fine, or other payment of expense owed to the governmental entity.”

“The governmental entity may require the payer to pay any service fees associated with the cryptocurrency transaction,” the law states.

CBDCs Excluded from Cryptocurrency Definition

"'Cryptocurrency' does not include a national currency." This effectively rules out CBDCs, or digital currencies issued by central banks. The tax commissioner may have fewer options when it comes to cryptocurrencies because of how the law defines them.

“‘Cryptocurrency’ means a digital representation of value […] for which there is a reasonable expectation that it will maintain a stable value relative to a fixed amount of monetary value.”

Ohio House Reviews Bill to Exclude CBDCs

The Ohio House is now considering a bill that would clarify that CBDC is not considered currency under the Ohio Uniform Commercial Code. The bitcoin mining business is one of the entities that another bill aims to safeguard, according to Cointelegraph.

Ohio’s Cryptocurrency Acceptance History

In his news release, Antani said that in 2018, Ohio was the pioneer in accepting cryptocurrency as a payment for state taxes. The State Board of Deposits never authorized the usage of cryptocurrency, despite the state attorney general's advice to that effect the following year. Anatoli stated:

“This policy should have been acted on by the State Board of Deposits when it was deemed necessary. Since they have failed to act, the legislature will."