- Ohio leaders propose officially labeling cryptocurrency a financial transaction device for state payments.
- The new plan ensures crypto payments are processed legally and converted to dollars for government services.
- If approved, Ohio will become the first state to formally adopt digital assets under a recognized financial term.
Cryptocurrency may soon carry a new official label in Ohio, as top state leaders push to recognize it as a “financial transaction device.” Coinbase’s Chief Legal Officer, Paul Grewal, used the phrase to describe how digital assets like Bitcoin could fit into traditional financial processes.
On April 25, Ohio Secretary of State Frank LaRose and State Treasurer Robert Sprague jointly called on the State Board of Deposit to approve crypto payments for government services. Their proposal outlines a framework for using cryptocurrency to pay state-related fees through an approved payment processor.
Previous attempt revised with new approach
Ohio has tested this idea before. The state briefly accepted Bitcoin for tax payments a few years ago. However, that effort ended due to legal concerns. Officials now say the current plan has been structured correctly from the beginning to ensure regulatory compliance.
Under the proposed model, residents and businesses could pay with crypto, similarly to using a credit card. A payment processor would handle the digital asset, convert it into US dollars, and transfer the funds to the state. This setup simplifies the process while maintaining clear records.
Grewal’s term, “financial transaction device,” highlights an effort to normalize crypto within existing payment systems. He emphasized that cryptocurrency does not need special treatment, just proper classification to reflect its growing role in transactions.
The move could influence other states
If the Ohio State Board of Deposit approves the measure, the decision may serve as a reference point for other states. Ohio would become the first to officially apply the label to digital assets in the context of state payments.
Officials have confirmed that the payment system would use approved crypto processors. This ensures the conversion process is secure and efficient, meeting the state’s financial requirements. LaRose and Sprague underscored the potential benefits of offering more payment options. They believe modernizing payment methods supports operational efficiency and financial accessibility for citizens and businesses alike.
