Since Colorado began accepting crypto for tax payments in September 2022, only $57,000 out of $11 billion in income tax has been paid using cryptocurrency, equating to just 0.0005%. In 2022, there were only eight crypto payments totaling $16,426, which slightly increased to 22 payments totaling $23,241 in 2023 but fell again in 2024 to $17,544 from 48 payments. The Colorado Department of Revenue clarified that the state does not directly receive cryptocurrencies; instead, taxpayers convert their digital assets to U.S. dollars via PayPal at the time of payment. This raises questions about the actual use of crypto for transactions, as a significant majority of American voters reportedly own or have used cryptocurrencies. Analysts speculate that Bitcoin and similar assets are generally viewed as stores of value rather than mediums of exchange. Only Utah also accepts crypto for some payments, while Detroit anticipates accepting crypto for taxes starting mid-2025 as part of efforts to modernize its municipal services and attract businesses.

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