Portsmouth has begun taking cryptocurrencies as means of payment from its residents. However, direct cryptocurrency transactions are not permitted at the time except if the citizens use Paypal.
Digital currencies are gaining traction, with more regions jumping on board. Portsmouth has taken the horse by the reins with the historic declaration that it would accept cryptocurrency payments for utility bills.
Portsmouth Accepts Digital Currencies
The revelation that Portsmouth has begun taking virtual currency as payment caused a little stir in the cryptocurrency communities. Deaglan McEachern, Mayor of the city, claimed that the development aimed to increase participation “by broadening the payment options available.”
Presently, residents are not allowed to make direct virtual currency payments to the government but must instead use PayPal’s cryptocurrency option. The usage of the PayPal option has sparked disputes in certain places about the model’s longevity, but the City’s Manager, Karen Conard, has allayed such fears. She claimed that prior to payment processors receiving payments in cryptos, PayPal would convert them to US dollars first.
“Customers who have cryptocurrencies saved in a PayPal account may now use that crypto to make transactions to the town while utilizing PayPal as their payment option,” Conard said. PayPal began accepting digital currencies years ago and has grown in popularity as a way for American citizens to purchase their first virtual currency. PayPal’s revenue rose by over 13% in the fourth quarter of 2021, with cryptocurrency operations contributing to the organization’s advancement.
The Mayor of Portsmouth has made no secret of his love for digital currencies, requesting that his salary be paid in cryptocurrency to understand the technology’s structure and operation better. He said that cryptos have the capability to alter the financial sector fundamentally.
“I want a situation where Portsmouth does not wait to see the ways this will influence us later on because it already has,” McEachern added.
The Growing Adoption Of Digital Currencies
Last year was a banner year for crypto, and commentators projected a better rate of adoption for the digital asset class at the outset of 2021. Congress met with cryptocurrency executives to hear directly from them as authorities tried to reign in the industry.
In the United States, certain states have expressed a desire to accept crypto payments entirely. Jared Polis, Governor of Colorado, noted that adopting cryptocurrencies for tax payments is the “latest inevitable phase on the route to digital democracy.”
Additionally, the Governor of Florida announced that the government intends to accept BTC as a form of tax payment in the near future. Different regions are making similar decisions as part of their plan to be crypto-friendly as the competition between regions heats up.