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The city of Austin in Texas might soon be joining the short but growing list of crypto-friendly cities in the United States. On Thursday, city councilors voted for a plan that will investigate the possibility of accepting cryptos such as Bitcoin (BTC) for tax payments.
The move is part of the city’s plan to become a crypto hub. The draft of resolution 55 noted that “cities leading in innovation, such as Miami and New York, have researched using cryptocurrencies as a form of payment for taxes, fees, and employee salaries.”
Despite the regulatory uncertainties surrounding digital currencies, Austin believes there are benefits to their adoption. “While there remains uncertainty around federal regulation and state law, the City of Austin, and residents, could potentially benefit from Austin being a global leader in the crypto space,” the draft said.
Austin’s City Manager is tasked to conduct a fact-finding study on the potential Bitcoin and other cryptocurrency policies that the city might adopt. The study will include the potential “acceptance of Bitcoin or other cryptocurrencies as a payment for municipal taxes, fees, and penalties.”
The fact-finding study will also delve into other applications of crypto that could benefit the delivery of the city’s public services. In addition, it will explore other issues associated with the use of cryptos such as financial stability, consumer benefits and risks, financial stability, security concerns, and environmental impact.
“The City Manager shall include in the fact-finding study an analysis of what would be required for the City to accept a donation of Bitcoin or other cryptocurrency and possible ways for the City to use those funds to address public service needs as well as an analysis of the financial stability and security of cryptocurrency,” the draft added. “The City Manager shall produce the full report by June 16, 2022.”
In a tweet, City Mayor Steve Adler expressed his support for the resolution. “Blockchain was a topic of much discussion among the 25 mayors who attended #SXSW,” he wrote. “Everyone is looking for innovative solutions to tackle municipal challenges, and this may be an option we look to in Austin.”
