Monat: April 2025

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Colorado receives fewer than 80 crypto tax payments in three years

  • PayPal converts crypto into US dollars before funds reach the state.
  • Bitcoin’s rising value discourages users from spending it on taxes.
  • Stablecoins may become the preferred method for future payments.

Since 2022, the State of Colorado has collected over $11 billion in income tax. Yet of that, only $57,211 has come from cryptocurrency payments. That is just 0.0005% of the total.

When Colorado became the first US state to accept crypto tax payments under Governor Jared Polis, the move was presented as a breakthrough for digital finance adoption.

But nearly two years later, figures provided to Colorado Newsline by the Department of Revenue suggest that uptake has remained negligible.

The data shows that while crypto ownership is rising across the United States, its use for tax obligations is far from mainstream.

Colorado residents can use PayPal’s Cryptocurrency Hub to pay in Bitcoin or other digital assets, which are instantly converted into US dollars before reaching the state treasury.

Despite the infrastructure being in place, only a handful of residents have opted in—and their reasons are more financial than technical.

Fewer than 80 payments

In 2022, only eight crypto-based tax payments were made in Colorado, totalling $16,426. That figure rose modestly in 2023 to 22 payments, amounting to $23,241.

In 2024, the number of transactions increased to 48, but the total paid declined to $17,544. Altogether, fewer than 80 payments have been recorded, with total crypto contributions stuck below $60,000.

None of this crypto is held by the state. All payments are instantly converted to fiat via PayPal’s system, meaning the Department of Revenue never touches digital assets directly.

That distinction matters: while Colorado is technically accepting crypto, it is functionally no different from accepting a card payment in dollars.

Store of value

Despite the small number of transactions, crypto ownership in the United States remains high. Around 20% of American voters have held or used crypto at some point.

But for most, coins like Bitcoin are not used to pay for goods or services—they are held as long-term investments.

That investment mindset is reinforced by Bitcoin’s performance. Since the start of Colorado’s crypto tax pilot in September 2022, the price of Bitcoin has surged more than 320%.

In September 2023, it posted a 30% annual gain, followed by another 125% in September 2024. With such returns, many holders are reluctant to spend their coins on tax bills, especially if doing so could trigger capital gains tax.

Stablecoin future

Colorado is not the only place experimenting with crypto-based public payments. Utah also allows tax payments via PayPal’s system. Detroit is planning to introduce the same model later this year.

Louisiana already accepts crypto payments for services and fines through Bead Pay.

Even so, experts remain sceptical about the long-term viability of using major cryptocurrencies for this purpose. Store-of-value assets like Bitcoin and Ethereum are ill-suited to everyday transactions, especially in volatile markets.

Industry voices suggest that stablecoins—digital tokens pegged to fiat currencies—may be the better fit for tax payments going forward.

Adoption remains symbolic

The Colorado example illustrates that offering crypto payments does not guarantee adoption. Many residents are unaware of the option, and even those who are often have little incentive to use it.

For now, crypto tax payment infrastructure may serve more as a political or technological signal than a practical alternative.

Still, the systems put in place could pave the way for broader adoption as the digital asset landscape matures. Whether that shift will be led by stablecoins, central bank digital currencies, or other innovations remains to be seen.

The post Colorado receives fewer than 80 crypto tax payments in three years appeared first on CoinJournal.

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Panama City joins global move to allow crypto payments in public sector

  • Local law allows payment for taxes, tickets, and permits.
  • City partners with banks to convert crypto to fiat.
  • Panama bypasses national legislation through local ordinance.

Panama City is set to become one of the first Latin American capitals to formally integrate crypto payments into its municipal system, allowing residents to pay for public services in Bitcoin, Ethereum, and stablecoins.

This move, driven by the city’s administration and not national legislation, marks a notable shift in how governments are embracing digital assets.

Panama City Mayor Mayer Mizrachi confirmed the development via a post on X (formerly Twitter) on Wednesday.

He stated that locals will be allowed to settle payments for taxes, permits, traffic tickets, and other municipal fees using cryptocurrencies such as Bitcoin, Ethereum, USDC, and Tether (USDT).

This step was made possible through a council-approved proposal and will be implemented in collaboration with banks that can receive and convert crypto to fiat currency.

Crypto rollout starts with top tokens

The new law gives local residents the option to use select cryptocurrencies instead of fiat money to meet their obligations to city hall.

The digital assets initially accepted include Bitcoin, Ethereum, USDC, and USDT, which have become widely adopted across both retail and institutional ecosystems.

Unlike previous efforts that attempted to implement crypto usage through national-level legislation, Panama City’s government found a way to bypass this hurdle by focusing on local regulation.

Mizrachi explained that earlier governments tried to push similar measures through Panama’s senate, but his administration opted for a simpler legal workaround that avoided introducing entirely new laws.

So far, there has been no official confirmation on whether other cryptocurrencies will be accepted in the future. A city representative did not immediately respond to media enquiries about the possible expansion of the asset list.

Banks to handle conversion

In order to operationalise this system, the city will rely on partnerships with banks that are technically capable of receiving digital assets and converting them to fiat.

This model allows Panama City to remain in line with national financial regulations while also giving residents the freedom to transact in crypto.

By allowing local banks to act as intermediaries, the city is aiming to balance innovation with compliance. The measure is expected to support wider crypto adoption in Panama without putting pressure on the central government to introduce sweeping policy changes.

Global crypto adoption grows

Panama City’s move reflects a broader shift across the region and beyond as governments begin to accommodate digital asset payments.

In 2021, El Salvador became the first country in the world to adopt Bitcoin as legal tender, followed by the Central African Republic the following year. Other countries such as Fiji and Tonga have also considered recognising Bitcoin as an official currency.

In Switzerland, municipalities like Zug and Lugano have already enabled payments for local services using cryptocurrencies. Zug has earned the nickname “Crypto Valley” for its openness to blockchain technology and favourable regulatory environment.

Panama, by contrast, has had a mixed relationship with crypto. In 2022, Panamanian President Laurentino Cortizo partially vetoed a bill that aimed to regulate cryptocurrencies and legalise decentralised autonomous organisations (DAOs).

At the time, the president cited concerns that the bill was not fully aligned with existing financial system norms.

Despite this national-level setback, Panama City’s latest move highlights how local governments can still proceed with adoption in specific areas such as public service payments.

National tensions remain

While Panama City is still in the early stages of implementation, its approach could serve as a model for other urban centres looking to embrace crypto without overhauling national law.

By partnering with compliant financial institutions, the city hopes to provide a secure and legally sound way for citizens to use their digital assets in everyday transactions.

Whether this local strategy can scale remains to be seen. But it underscores the growing influence of cryptocurrencies in mainstream economic infrastructure—not just as speculative assets, but as tools for public finance.

The post Panama City joins global move to allow crypto payments in public sector appeared first on CoinJournal.

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Bhutan’s hydro-powered crypto gamble: can green mining fuel economic growth?

Nestled in the Himalayas between India and China, the Kingdom of Bhutan is charting an unconventional economic course, harnessing its abundant hydropower resources to mine “green” cryptocurrencies.

The nation’s sovereign wealth fund sees this strategy not just as a potentially lucrative investment, but as a vital tool to diversify the economy, generate employment, and combat a worrying exodus of its young, educated populace.

Harnessing hydropower for digital assets

Ujjwal Deep Dahal, the chief executive of Bhutan’s sovereign wealth fund, Druk Holding and Investments Ltd (DHI), outlined the nation’s unique approach.

Green cryptocurrencies, unlike their more energy-intensive counterparts often reliant on fossil fuels, are mined using renewable energy sources.

For Bhutan, this means leveraging its status as a country running entirely on clean hydropower.

“We are a nation that runs 100% on hydropower, and every digital coin we mine in Bhutan using hydropower offsets that coin which gets mined using fossil fuels,” Dahal explained to Reuters on Tuesday.

So a coin mined in Bhutan will contribute to the green economy.

DHI, which also controls the country’s primary power generation utility, began incorporating cryptocurrencies into its investment portfolio back in 2019.

Dahal described the move as both a “tactical investment” and a potential “gamechanger” for the nation, long renowned for prioritizing its unique Gross National Happiness (GNH) index over traditional GDP metrics.

This index considers factors like sustainability and well-being alongside economic output.

The crypto mining operations involve using energy-intensive supercomputers, powered entirely by Bhutanese hydropower, to generate digital assets for the blockchain.

Beyond revenue: tackling brain drain and tapping ESG

The strategy has already yielded tangible results.

According to senior officials in the capital, Thimphu, Bhutan has earned millions of dollars from its crypto investments in recent years, even using some profits to cover government salaries for a two-year period.

Beyond direct financial gains, the initiative aims to address pressing domestic challenges.

Bhutan, with a population of around 800,000, is grappling with significant “brain drain.”

Government estimates suggest over 10% of its young people emigrated between 2022 and 2023, contributing to a youth unemployment rate of 16.5% in 2024.

DHI sees the burgeoning digital asset sector as a potential solution. “Bitcoin has not just given more value to hydropower energy, it has also increased access to liquidity in foreign currency,” Dahal stated, adding that training Bhutan’s youth in “blockchain and AI techniques would fuel jobs.”

Furthermore, officials are exploring an intriguing avenue: positioning Bhutan’s verifiably “green” coins as attractive assets for large corporations seeking to meet their environmental, social, and governance (ESG) targets.

This could create a premium market for Bhutanese-mined cryptocurrencies.

Powering the ambition: the hydropower hurdle

However, the success and scalability of Bhutan’s green crypto ambitions hinge critically on significantly expanding its hydropower infrastructure.

Analysts note that realizing the vision of becoming a global hub for green digital currency requires moving beyond the current generating capacity of approximately 3.5 gigawatts towards harnessing a potential estimated at 33 gigawatts.

Dahal acknowledged this necessity, outlining concrete expansion plans.

“We have plans to generate 15 gigawatts in the next 10 to 15 years,” he added, signaling a long-term commitment to building the energy foundation required for this innovative economic diversification strategy.

The kingdom is thus embarking on a journey where sustainable energy and cutting-edge digital finance intertwine, aiming to secure both economic prosperity and the well-being of its future generations.

The post Bhutan’s hydro-powered crypto gamble: can green mining fuel economic growth? appeared first on CoinJournal.

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Bitcoin price prediction: analyst predicts BTC will hit $137k by Q3

  • Bitcoin (BTC) has rebounded above $85,000, with a predicted rise to $137,000 by Q3 2025.
  • US Treasury’s $500B liquidity boost and ETF inflows drive the bullish Bitcoin price prediction.
  • However, risks like US debt ceiling talks and failure of the coin to break $85,000 resistance could push the BTC price lower.

Bitcoin’s price trajectory over the past few days has captured the crypto community’s attention as it stabilizes above $85,000 after a recent dip below $80,000 following US President Donald Trump’s Liberation Day tariffs.

Analyst Titan of Crypto has forecasted that Bitcoin (BTC) could soar to $137,000 by the third quarter of 2025, igniting excitement among cryptocurrency enthusiasts.

This ambitious prediction hinges on a blend of technical indicators and macroeconomic trends currently shaping the market.

Why Bitcoin (BTC) price could hit $137,000

One of the factors behind Titan’s Bitcoin price prediction is the massive US Treasury liquidity injections.

The US Treasury has injected $500 billion into the markets since February 2025, reducing its Treasury General Account from $842 billion to $342 billion, significantly boosting liquidity in the markets.

This move elevated the net Federal Reserve liquidity to $6.3 trillion, with forecasts suggesting it could climb to $6.6 trillion by August if debt ceiling negotiations persist.

According to historical trends, BTC has exhibited an 83% correlation with global liquidity over the past year, often outperforming traditional assets like stocks and gold.

For example, past liquidity surges in 2022 and 2023 preceded notable Bitcoin rallies, hinting that the current environment could pave the way for another upward surge.

On the technical front, Titan of Crypto points to a bullish pennant pattern on Bitcoin’s daily chart, suggesting a potential 60% rally to $137,000 if it breaks the 200-day EMA near $90,000.

Bitcoin has struggled to overcome this resistance around $85,000 since late February, but a decisive close above it could shift momentum firmly in favour of the bulls.

Adding to the optimism, Bernstein analysts had predicted that over $70 billion in Bitcoin ETF inflows in 2025 could push prices as high as $200,000, reflecting growing institutional adoption.

The April 2024 halving, which slashed mining rewards to 3.125 BTC, further supports this narrative, as previous halvings have triggered bull runs exceeding 600% gains.

Beyond technicals, macroeconomic factors like recent tariff exemptions have lowered US Treasury yields, easing pressure on risk assets and creating a fertile ground for Bitcoin’s growth.

Market sentiment also leans bullish, with buy-side liquidity on exchanges like Binance outpacing sell-side by a factor of 10, while large investors shift BTC to cold storage, signaling long-term confidence.

The risks to Bitcoin’s climb

However, risks loom on the horizon, as an early US debt ceiling resolution could cap liquidity at $6.3 trillion, potentially stunting Bitcoin’s ascent.

Renewed trade war fears or geopolitical tensions could also drive investors toward gold, leaving Bitcoin vulnerable to a shift in safe-haven preferences.

Technically, failure to breach the 200-day EMA could trap Bitcoin below $85,000, risking a drop to supports at $78,000 or $74,500.

Despite these challenges, the broader 2025 outlook remains bright, with price targets ranging from $137,000 to $250,000, fueled by ETF inflows, corporate uptake, and post-halving dynamics.

Companies like Semler Scientific, planning to raise $500 million to buy more BTC, exemplify the rising corporate embrace of Bitcoin as a treasury asset.

Meanwhile, potential US-China trade talks could further enhance risk-on sentiment, benefiting speculative assets like Bitcoin if tensions ease.

In the mining sector, increased selling by miners due to lower profitability, evidenced by 15,000 BTC outflows on April 7 when prices hit $74,000 according to the weekly CryptoQuant’s report, presents a short-term hurdle.

Bitcoin miner CleanSpark on Tuesday announced it has secured a $200 million Bitcoin-backed credit facility from Coinbase Prime, shifting away from its previous 100% Bitcoin HODL strategy.

The company will now begin selling part of its monthly BTC production to support growth and fund operations.

However, the robust demand from institutional and retail investors appears poised to absorb this supply, maintaining upward pressure on prices.

Ultimately, Titan of Crypto’s $137,000 Bitcoin price prediction by Q3 2025 rests on a compelling mix of liquidity trends, technical potential, and institutional momentum, offering a plausible glimpse into Bitcoin’s near-term future.

The post Bitcoin price prediction: analyst predicts BTC will hit $137k by Q3 appeared first on CoinJournal.