The rejection of the bill in New Hampshire had to do with the volatility seen in the price of digital currencies.
The New Hampshire House of Representatives in the US announced its decision to withdraw a bill that generated high expectations among users of digital currencies at the local level, since it would allow interested persons to pay taxes with funds Bitcoin
According to a statement published by the House of Representatives of New Hampshire, the decision after the withdrawal of the bill came at the rate of a motion presented by the Executive Departments and by the Administration Committee of the General Court, since according to these entities , the initiative was not suitable because of the volatility seen in the prices of digital currencies.
The bill for New Hampshire
Originally, the Subcommittee of the State House of Representatives unanimously approved the project presented on January 5, 2019, with which they sought the acceptance of digital currencies such as Bitcoin for the payment of taxes and fees of state agencies.
Although the agency intended to promote the bill for New Hampshire, it had to go through the House of Representatives and the Senate to go to the state governor for approval. If these entities accept the proposal, the step to follow would have to do with the presentation of a plan that adequately illustrates the procedure to follow.
However, due to the volatility seen in the price of the main digital currency, the authorities considered that the project was ineffective, since the Department of Revenue Administration (DRA) would have important consequences when making the corresponding balance and control the corresponding income for 2020.
The statement reads:
“Such changes would increase DRA expenses indefinitely for fiscal year 2020 if implemented by July 1, 2020. The agency cannot estimate whether this would result in additional revenue due to the volatility present in cryptocurrencies … this could affect the respective income. “
Another rejected bill
The resolution regarding this bill concluded similarly to another initiative introduced in 2015, which was also rejected by legislators who used similar allegations.
In 2018, there were similar bills to the recently rejected one presented in the states of Arizona, Illinois and Georgia, but those proposals were also unsuccessful due to the skepticism seen among economists and financial analysts. Although there are many people in the community who would expect to use their cryptocurrencies for the payment of taxes, state governments in the US do not seem to have much interest in promoting alternative payment mechanisms that use the new cryptographic technologies as a basis.
However, it remains to be seen if a similar initiative that manages payments with a stablecoin recognized by the US government as a proposal will prosper, precisely because of the boom of this type of assets within the country in recent years.