After becoming the first U.S state to allow businesses to pay taxes with Bitcoin back in November, Ohio Treasurer Robert Sprague announced Wednesday that they had suspended the service, which was hosted on OhioCrypto.com.
The foremost reason provided by the Treasurer’s office regarding the decision to suspend the platform is that the payment processor, BitPay, which converted the received bitcoins to fiat for the state, was not duly authorized.
The statement alleged that the OhioCrypto.com website used for the tax collection is a “financial transaction device,” and thus, BitPay should have received authorization from the Board of Deposit, which consists of the Attorney General, Auditor of State, and Treasurer of State.
“Until a formal opinion is issued by the Attorney General, I feel it is prudent to suspend the website,” Sprague said in Wednesday’s announcement before pledging his commitment to promoting innovative technologies in the state.
Meanwhile, He also noted in a separate statement that the OhioCrypto.com website has never really gained traction with less than ten businesses choosing to use the portal for tax payments within the ten months that the platform has existed.
Coinfomania reported the opening of the landmark OhioCrypto.com portal in November 2018 by former Ohio Treasurer, Josh Mandel, who even suggested that the platform could be rolled out for individual tax payments at a later date.
However, the platform’s failure to take off as Sprague claimed in yesterday’s update, could be considered evidence that businesses and even individuals do not frequently use Bitcoin as a means of payment but as a store of value similar to gold.