Taxpayers in the United States can receive all or just part of their state and federal tax refunds in Bitcoin. This was made possible through the collaboration between the blockchain payments processor BitPay and Refund, which is a provider of financial products related to tax.
The use of the CoinRT of Refundo
In one statement from Refundo, they said that its CoinRT product is particularly useful for low-income communities which do not have checking accounts and usually resort to paying some high check-cashing fees. With that being said, the CoinRT service of Refundo isn’t free. In fact, it costs $34.95 per refund transfer, and that does not include the 1% service fee of BitPay.
The customers of Refundo will be able to choose to receive all or just part of the tax refund in Bitcoin with the use of CoinRT. The taxpayers will need to set up their accounts to get unique routing, as well as the account number to input on their tax return.
They are also going to have to provide necessary background information for KYC or know-your-customer rules, and Bitcoin wallet addresses. Once that the IRS or Internal Revenue Service or state has deposited the refund, BitPay is going to process the payment, as well as send Bitcoin to the wallets of the taxpayers.
Refundo focused on low-income communities
Refundo is now specializing in serving low-income communities. The CEO of Refundo, named Roger Chinchilla, said that these communities usually send money abroad, so that the integration of Bitcoin may streamline both their international remittances and their tax refunds.
He said that Bitcoin provides transactional transparency, as every transaction is actually verified, and recorded, as well as stored on the blockchain. The transaction contains no sensitive personal detail and information too.
The service is actually touted as primarily being focused on serving the underbanked community with some faster payments, as well as lower transaction fees.
In fact, Refundo offers a few options in order to help taxpayers receive their tax refunds much safer, more comfortable, faster, as well as more conveniently. Adding Bitcoin has been a natural fit for their customers that usually don’t have traditional checking accounts, and pay high check-cashing fees, or regularly send money internationally. CoinRT gives them the ability to get Bitcoin quickly and promptly for one flat fee.
On an institutional level, the accounting firm of Big Four, called Ernst & Young or EY, recently introduced a cryptocurrency tax tool, which is specially designed for its clients that invest in digital currencies.
One month later, EY also followed up by launching the second generation of the EY Blockchain Analyzer. The tool is going to help clients that hold or also trade cryptos by automatically calculating their capital losses and gains.
The CEO of BitPay expects mass adoption in 3 to 5 years
Although taxes are annoying, they are simply part of our lives. So, the slow integration of cryptocurrency into something which we all need to do will lend some legitimacy to an industry which still struggles for mainstream acceptance.
According to some reports, the CEO of BitPay, named Stephan Pair, said that he actually believes that mass crypto adoption is less than five years away. He used to say ten years, but now he believes that it is more like three to five years when everybody will have the ability to accept a blockchain payment.
When he was asked whether the approval of SEC of a Bitcoin ETF is going to speed up the mass adoption, he said that the ETG is actually not the end-all, be-all. But, he also said that Bitcoin ETF is going to push Bitcoin prices higher.
He even remarked that the prices of Bitcoin do not reflect its actual utility; in fact, it is a result of speculation over its future adoption. According to him, every significant component of the price of Bitcoin is certainly speculation. It is actually investors that are speculating on future use, as well as the adoption of this technology. He is sure that a small component of that price would be the actual utility.