COLUMBUS, Ohio — Ohio recently gained national attention when they announced plans to explore the possibility of enabling residents to pay state fees along with taxes using cryptocurrency such as Bitcoin. While the proposal introduces the potential of innovation in the state, critics have pointed out that doing so raises unnecessary risks to state finances.
What’s the Proposal?
The initiative proposed by Ohio State Treasurer Robert Sprague and Secretary of State Frank LaRose falls short of what is considered a digital advancement. Calculated as a modernization effort, under their proposal, state agencies would be given the authority, but not the obligation, to accept cryptocurrency for payments starting with business filings in LaRose’s office.
“We are authorizing the use of cryptocurrency as just another way to keep up with current practices that are generally accepted by the public and the people of the state of Ohio,” said Sprague.
LaRose established, “My office is willing to be the first one within state government to start accepting Bitcoin and start doing so right away.”
What Is Cryptocurrency, Really?
With Michael Goldberg from Case Western Reserve University’s Veale Institute for Entrepreneurship, cryptocurrency is deemed a ‘peer-to-peer digital currency’ that does not fall under any national or regional jurisdiction as it exists outside traditional finance. Those coins are conserved in databases referred to as blockchain and can be traded akin to stocks. “Usually with Bitcoin, there are fewer fees linked with it,” Goldman pointed out.
Bitcoin, the biggest and most renowned cryptocurrency, was valued at over $94,000 per coin as of Friday evening.
This is not Ohio’s maiden intention to make cryptocurrencies operational within its state functions. Back in 2018, Ohio’s former treasurer and Josh Mandel instituted a program that permitted residents of Ohio to pay taxes using Bitcoin. The program was suspended 12 months later after Ohio’s Attorney General Dave Yost publicly expressed that Mandel didn’t administer the requisite legal procedures.
“We will certainly have an orderly procedure for this,” Sprague proclaimed. “We will have a way that is open for everyone to see.”
Not everyone has jumped in to try and defend the use of crypto when it comes to state spending. Digital currency defender Catherine Turcer from Common Cause Ohio expressed her deep reserve concerning the initiative.
“Anything could happen to it,” she explained, talking about why cryptocurrencies could be defrauded of funds. “Whether it’s hacking or deflation—when you pay your taxes on April 15 and they plummet on the 16th—it’s just too volatile.”
Sprague stated that all cryptocurrency the state received would be instantly exchanged for U.S. dollars. “Our mission here is to ensure a thoughtful, safe, and secure method for accepting this cryptocurrency to immediately convert it into U.S. dollars for the state treasury.”
A Growing Concern: Cybercrime and Crypto Fraud
Cybercrime presents a greater issue for state authorities. The FBI reported a staggering $9.3 billion in losses related to cryptocurrency cybercrime in 2024 alone. Goldberg acknowledged the challenges posed by deregulation: “It’s still very much the wild, wild west; completely deregulated. If someone is defrauded, it can be really difficult to recover assets.”
Political Motives or Policy Innovation?
Political reasoning accompanies the push for crypto. Both Sprague and LaRose were seen escorting Republican gubernatorial candidate Vivek Ramaswamy, who is known for his pro-digital currency stance. Some analysts have stated that the proposal comes from a place of politics rather than policy.
Sprague pushed back: “We aren’t doing this on the campaign trail. This is something that we are working on together , modernizing our offices to make it easier for the people of Ohio.”
LaRose, too, rejected the proposal. “I’m not going to dignify any speculation about who Mr. Ramaswamy may or may not pick as a running mate,” he said, with clear irritation.
Personal Investment Draws Critical Attention
To the question of whether they held crypto assets personally, Sprague laughed before denying holdings: “I wish.”
“He is not the most irresponsible with money,” LaRose admitted. “I think at this point I own like 10 grand of Bitcoin that I’ve been able to amass by putting aside a bit of my paycheck every month.”
Turcer remarked that supporting Bitcoin might create ethical problems if one owns some. “It is interesting that (LaRose is) proposing this — it both curries favor with the president and could actually make him richer,” she informed. “The more people participate in the Bitcoin system, the more the value raises.”
Other Crypto Bills in the Flow
The ambition of Ohio regarding crypto does not stop only at getting taxes paid. Currently, there are two bills in the Ohio House, both sponsored by Rep. Steve Demetriou, that seek to expand the broader regulatory scope. One aims to prohibit additional taxes on crypto, while the other bill will enable the state treasurer to invest public money into high-value digital assets.
Reverberations of Past Scandals
For certain Ohioans, the scheme brings back disquieting associations with Coingate—a rather infamous rare coin investment scandal in the early 2000s that saw enduring financial fallout, alongside criminal prosecutions for the then-governor Bob Taft.
“We had different investment strategies,” Turcer recalled. “We were investing in rare coins — and guess what? The state of Ohio lost money.”
What Comes Next?
The Board of Deposit, which contains members Sprague and Yost alongside Auditor Keith Faber, is set to convene in the following weeks to go over the proposal. If it passes, Ohio may become one of the first states to accept crypto as payment for public services, which would make them a forerunner to other governments who may be waiting for guidance.
Amidst Goldberg’s ongoing concerns, he still believes the world of crypto is here to stay. When Bitcoin was released, I’m sure there were a lot of questions,” he stated. “And it’s held up.”
