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The Almighty Buck Government United States

First Government Office in the US To Accept Bitcoin As Payment (orlandosentinel.com) 42

Long-time Slashdot reader SonicSpike quotes the Orlando Sentinel: If cash, check or credit card seems too old-fashioned, Seminole County, Florida Tax Collector Joel Greenberg said this week his office will begin accepting bitcoin as payment for new IDs, license plates and property taxes starting next month. Greenberg said accepting bitcoin and bitcoin cash as a payment method will promote transparency and accuracy in payment.

"There's no risk to the taxpayer," said Greenberg, who has often raised eyebrows since his 2016 election by moves including encouraging certain employees with concealed-weapons permits to carry a firearm openly as a security measure. "Blockchain technology is the future of the whole financial industry."

A spokesperson for a neighboring county's tax collector said they had no plans to follow the move. "Frankly, I think the currency is so volatile that I donâ(TM)t think it makes sense."

And an official at a nearby county said bitcoin payments were "not on our to-do list", adding that no one in the county had requested the ability to pay their taxes in bitcoin.
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First Government Office in the US To Accept Bitcoin As Payment

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    • by perpenso ( 1613749 ) on Saturday May 19, 2018 @07:09PM (#56640548)
      There likely is no risk, the country is probably using the same sort of bitcoin payment processors that various merchants do. When using these services the recipient never sees or touches a bitcoin, they only receive fiat. When someone indicates that they want to pay with bitcoin the payment processor is given a dollar amount, they do a real time conversion to bitcoin and provide a payment address and a coin amount, when that coin amount shows up at the address the recipient is notified and the recipient's account is credited for the exact dollar amount they original specified. The taxpayer was never exposed to any bitcoin volatility risk. The taxpayer merely paid a payment processor's fee, just like when they accept a credit card and pay a fee.
  • Not really... (Score:5, Informative)

    by mhkohne ( 3854 ) on Saturday May 19, 2018 @05:50PM (#56640328) Homepage

    BitPay is guaranteeing the exchange rate for long enough for the transaction to go through. So the tax office never actually takes Bitcoin - BitPay takes BitCoin, and sends cash to the government office. And presumably, BitPay gets a cut somewhere in there.

    It's more or less like adding a new credit card processor, as far as the receiver of the payment is concerned.

  • I mean, I'm all in favor of government being more proactive, responsive, etc, but this is ridiculous.

    And, by the way, didn't the other story today just say that quantum computing is about to break encryption in 5 years?
  • by gravewax ( 4772409 ) on Saturday May 19, 2018 @06:14PM (#56640374)
    The government department is not accepting bitcoin at all, it accepts the cash equivalent as transacted through bitpay. They are not nor do they have any intention of accepting bitcoin.
  • Government relies on Bitpay cover the risk associated with volatility. Bitpay will make nice benefits or huge losses depending if bitcoin is rising or crashing vs USD. Is it just government promoting speculation?

    Perhaps... except that Bitpay only guarantee the rate for 15 mn, and bitcoin transaction can make much more time to be processed. Hence government also takes a share in the volatility risk.

    • I am pretty sure, that the government will never take the risk with volatility, they will just send the payer a bill for the difference.

    • by Kjella ( 173770 )

      Perhaps... except that Bitpay only guarantee the rate for 15 mn, and bitcoin transaction can make much more time to be processed. Hence government also takes a share in the volatility risk.

      Some simple searches would show this is false. Bitpay guarantees the exchange rate for 15 minutes, if your bitcoins arrive later they'll be converted at the current rate and if it's enough they'll pay the invoice, otherwise they'll just send you back a notification that you underpaid so try again. In which case it looks like you need to get a refund (2nd transaction fee) and pay again (3rd transaction fee). Not surprising since they don't know when you initiated the transfer, if you spent 14 minutes waiting

    • by tlhIngan ( 30335 )

      Perhaps... except that Bitpay only guarantee the rate for 15 mn, and bitcoin transaction can make much more time to be processed. Hence government also takes a share in the volatility risk.

      No, it just converts it at the current rate. Which means you can underpay and have to pay again.

      And even when BitCoin payments were taking days to transact, you can still get them done in 10 minutes - it just means you have to pay $50 in transaction fees since you set how much extra you need to pay. There's a default fee

  • Florida requires a concealed carry permit. You can not get a permit for openly displaying a firearm. Only cops have that privilege. So here we have a tax collector that feels tax collectors can openly display a weapon. What happened to the law being equal for all people all of the time?
  • Greenberg said accepting bitcoin and bitcoin cash as a payment method will promote transparency and accuracy in payment.

    I don't think BitCoin is what he thinks it is.

The explanation requiring the fewest assumptions is the most likely to be correct. -- William of Occam

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