Ohio is taking steps to accept cryptocurrency for tax payments, driven by a proposal from State Treasurer Robert Sprague and Secretary of State Frank LaRose.

A recent poll indicated that about 20% of Ohio residents own some form of cryptocurrency, reflecting a growing interest in digital currencies.

Cryptocurrency operates as a peer-to-peer digital currency, independent of central authorities, with Bitcoin being the most notable example.

Sprague emphasized the importance of balancing innovation with caution, stating, 'We don’t want to be on the bleeding edge of things, but we want to be on the leading edge of things.'

The initial phase of this initiative will allow state agencies to accept cryptocurrencies for business filings, although it will not be mandatory for all agencies.

To mitigate financial risks, the proposed system will convert cryptocurrency payments into U.S. dollars immediately upon submission.

While LaRose has disclosed a personal investment of about $10,000 in Bitcoin, Sprague has expressed skepticism and does not own any cryptocurrency.

Sprague has raised concerns about the volatility and technicalities of digital currencies, emphasizing the need for caution in their adoption.

Advocates for accountability, including Catherine Turcer, have warned about the risks associated with cryptocurrency, such as hacking and market instability.

The FBI reported significant losses of $9.3 billion in 2024 due to cryptocurrency-related cybercrime, underscoring security concerns in the crypto market.

House Bill 18, introduced by Rep. Steve Demetriou, seeks to allow the Treasurer to invest up to 10% of certain state funds in digital assets, including cryptocurrencies.

Additionally, House Bill 116 is being considered to prevent state and local governments from imposing taxes on cryptocurrencies, which would support the groundwork for HB 18.