Lawmakers in the United States state of California have introduced a bill that allows local businesses associated with the production and sale of cannabis to pay taxes and fees in stablecoins.
The bill would allow the state, city and county tax offices in California to take stablecoins ― cryptocurrency, attached to the physical asset or currency unsecured ― from cannabis-related companies seeking to pay their excise or cultivation taxes. It is reported that the bill will come into force on 1 January 2020.
The document includes some explanation:
"The bill would allow city or county to either accept stablecoins directly into the digital wallet controlled by the jurisdiction or use third party services for processing digital payments and immediate conversion stableking in American dollars for their subsequent crediting to the account of this jurisdiction."
Despite the fact that cannabis has been legalized in several states in the U.S., cannabis businesses it is very difficult to use the financial services of banks. The vast majority of these banks is related to the Federal Deposit Insurance Corporation (FDIC), so they are not allowed to provide services to the industry, which is still considered illegal under federal law.
Cannabis shops can hold hundreds of thousands of dollars in cash at any given time. The bill, apparently, is an attempt to reduce the huge amounts of cash that fall in state tax authorities and require processed. California State Treasurer Fiona Ma recently testified before the U.S. House Committee on Financial Services regarding the tax collection process for cannabis businesses. She stated:
“Duffel bags and sometimes suitcases of cash would arrive quarterly at some of our designated offices and some business owners had to pass several hundred miles to pay the taxes."
In 2017, the Dash network began to introduce the cryptocurrency of the same name as a payment method in cannabis shops. In doing so, Dash sought to replace only 10-15% of the total cash turnover of the industry, since a radical reduction in the cash flow would immediately lead to failure of stores from cash desks, safes and security guards.
In other U.S. States also introduced bills that allows you to pay taxes in bitcoin. In January of this year lawmakers of the U.S. state of New Hampshire proposed a bill to accept Bitcoin (BTC) for state payments. According to legislators, this bill requires the development of the implementation plan, which will allow the state to accept payment of taxes and fees in cryptocurrency beginning July 1, 2020.