As reported by Snapperbuzz earlier last week, Ohio’s State Treasurer Josh Mandel made an announcement to make Ohio the first US state to allow business to pay taxes with Bitcoin. While this move of Mr. Mandel has been appreciated on an international level by all the businesses, in this article we try to analyse how the scenario with respect to employment is going to change if this announcement comes true. It is highly likely that the move shall bring huge State and Corporate employment in the Blockchain Sector as soon after the announcement, around seven tech funds across Ohio pledged an investment of $100 million in the Blockchain Startups. The move is being regarded as one of the major technological strides in the past couple of months.
Tech Republic quoted Craig McGregor, CEO of DSTOQ:
It’s now established all over the world that India has the biggest manpower of Blockchain Developers and with the amount of Salary and work profile being offered around the world, there is a possibility that a new wave of Brain Drain might arise. For those working in Indian Blockchain Startups, it is clear that if they aren’t paid adequately or with respect to the Indian startups, they’ll start shifting to other countries where they get better opportunities like US where states like Ohio is working to better the business of it’s State.
RISK ANALYSIS: OHIO’S STEP A BOOST OR A BUST?
Critiquing State of Ohio’s decision, there are many contentions which are being raised and the most important one which needs to be addressed is the risk with respect to Pubic interest. In a Report published by Quartz, discussed what all can go wrong if the state implements a Bitcoin payment system for tax. Quartz connected with the Ohio’s Treasurers Office and talked about potential risks with respect to Tax Frauds:
“There are other reasons to be concerned. In Canada, fraudsters have stolen hundreds of thousands of dollars through bitcoin tax collection scams, so Ohio’s decision to actually accept bitcoin for taxes—even indirectly—could create confusion and put its taxpayers at risk of being targeted by con artists.Surprisingly, Ari Lewis, cryptocurrency advisor to the Ohio Treasurer’s Office, told Quartz he wasn’t familiar with the bitcoin tax collection scams that have plagued the Canadian Revenue Agency. “I don’t see that as a cryptocurrency-specific issue,” Lewis said, suggesting such scams could be perpetrated through other payments processors, too.”
The same was also reported by Tech Reublic in one of their conversations with Avivah Litan, Vice President and Distinguished Analyst in Gartner Research and she was quoted saying
The main risk for Ohio really lies in public interest, said Litan. But even so, that isn’t necessarily as much of a risk for Ohio as it is for the Bitpay company. “I don’t think they take any risk at all by doing this in Ohio, it’s really just turning on Bitpay,” Litan said. “The risk is to Bitpay, that people won’t be interested in Bitcoin anymore for payments.”