On Thursday, the United States Division of Motor Vehicles (DMV) for Colorado state announced that it will be offering cryptocurrency as a new payment option for residents looking to renew their driver’s license or vehicle registration.
According to a press release by the DMV, Coloradans can make payments using cryptocurrency through PyaPal on the myDMV website when paying for services such as registration and renewal of driver’s licenses, identification cards, and vehicles.
Colorado DMV Now Accepts Crypto For Online Payments
Senior Director of the Colorado DMV, Electra Bustle said the agency is always looking for ways in which it can better serve the people of Colorado and “leverage technology” to offer its services.
Bustle believes that the implementation of the new online crypto payment option is yet another way in which the DMV is providing “innovative” and “convenient” services to its customers.
Those who choose to pay for the services with cryptocurrency will be redirected to PayPal, where they can choose from one of the supported crypto assets to perform the transaction.
The system then automatically converts the sufficient amount of cryptocurrency for the transaction and its subsequent fees to dollars, which will be remitted to the DMV to complete the transaction procedure.
According to information provided by the DMV, crypto payments will only be accepted if they are made via PayPal accounts and will carry a service fee of $1 plus 1.83% of the total amount paid in cryptocurrency. The transaction will also be subject to PayPal fees.
The tokens currently supported by PayPal are Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), and stablecoins including the newly launched PayPal USD (PYUSD), and USD Coin (USDC).
Colorado Leading In The U.S. When It Comes To Implementing Crypto-Powered Technologies
The state is turning itself into a haven for cryptocurrency-related services under the leadership of Governor Jared Polis.
In March of last year, Colorado became the first state in the country to accept cryptocurrencies for tax payments. At the time, Governor Polis, who is regarded as a champion of crypto, announced the option to pay in digital currency was available on the state’s Department of Revenue website.
Similar to the DMV, tax payments are also performed via the PayPal Cryptocurrency Hub and carry a service fee of $1 plus 1.83% of the payable amount. However, the payments are only accepted when done from personal accounts as the feature is not yet available to businesses operating in the state.
Polis, who was a founding member of the Congressional Blockchain Caucus, was active in introducing cryptocurrency legislation during his time as a member of the U.S. House of Representatives.
Polis Pitched In Legislation To Abolish Tax For Crypto Payments Below $600
In 2017, the Bitcoin-friendly congressman introduced the Cryptocurrency Tax Fairness Act, a bipartisan effort with Republican representative David Schweikert, aimed at giving taxpayers a leeway to use cryptocurrencies for payments of up to $600 without needing to submit a tax return with the Internal Revenue Service (IRS).
The Blockchain Caucus is an initiative founded by the incumbent Colorado governor to increase cryptocurrency education and awareness among U.S. lawmakers in an effort to help them enact proper legislation.
During his reelection campaign in 2022, Polis became one of the first political candidates in U.S. history to drop an NFT collection. The digital collectibles were released as an initiative to fundraise for his governorship campaign.