Residents of Ohio can now pay for certain government services using cryptocurrency.

As the fourth state to allow such a measure, Ohio’s move follows a unanimous decision by the State Board of Deposit, which recently approved the state’s first vendor contract to process digital asset transactions.

Back in March this year, the board had approved cryptocurrency as an authorised payment method, and the latest measure builds on that effort.

Secretary of State Frank LaRose, a key proponent of the plan, welcomed the development and framed it as a step toward modernising government services and maintaining Ohio’s competitive standing for business and innovation.

“My office processes hundreds of thousands of financial transactions each year, and we’ve heard a growing demand for a cryptocurrency payment option. I’m excited and ready to be the first to provide it to our customers,” Larose was quoted as saying.

Now, the Secretary of State’s office is preparing to become the first state agency to roll out this feature.

A third-party vendor will be appointed to facilitate all payments and handle conversions from crypto to fiat to ensure that the state receives US dollars while still offering residents flexibility in how they pay.

As of press time, no further details regarding the vendor have been released.

This rollout complements Ohio’s other legislative efforts, via which state lawmakers have sought to promote crypto use. 

Earlier this year, lawmakers introduced the Ohio Blockchain Basics Act, a comprehensive bill crafted to enshrine protections for activities like self-custody, mining, and staking.

Among other provisions, the bill blocks local governments from imposing extra taxes or fees on crypto transactions and calls for a formal review into the possibility of allowing state retirement funds to invest in crypto-related ETFs.

Meanwhile, LaRose and other officials have backed House Bill 18, which proposes the creation of an Ohio Strategic Cryptocurrency Reserve, separate from an earlier Bitcoin reserve bill introduced in December 2024.

That being said, similar initiatives have been taken up by a few other states across the US, but adoption has been limited, and actual usage figures suggest that crypto as a payment method for public services remains more symbolic than practical.

For instance, Colorado began accepting tax payments in cryptocurrency in September 2022 under Governor Jared Polis, but usage remained minimal. 

Over a three-year period, fewer than 80 crypto-based tax payments were processed, totalling just over $57,000, roughly 0.0005% of the state’s income tax collections during that time.

Also, payments were processed through PayPal’s crypto hub and instantly converted to dollars, meaning the state never actually held digital assets.

Louisiana also launched a crypto payment system in 2024, accepting Bitcoin, USDC, and payments over the Lightning Network for services like fines and fees.

The state worked with private partners such as Bead Pay to build out the infrastructure.

Even in Louisiana, where the program was launched with fanfare, usage metrics have not yet indicated widespread uptake.

Other states that passed similar measures include Utah, which passed a bill in 2022 allowing agencies to accept crypto starting in 2023, while Florida, under Gov. Ron DeSantis, has previously made regulatory overtures toward enabling crypto tax payments.

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