Cryptocurrency just got a new label - and it might be the one that finally sticks, for government purposes. Coinbase’s Chief Legal Officer Paul Grewal described it in three simple words: financial transaction device.
It is not just a catchy phrase but a nod to what is happening right now in Ohio, where top state officials are pushing to officially allow crypto payments for government services.
On April 25, Secretary of State Frank LaRose and Treasurer Robert Sprague called on the State Board of Deposit to recognize cryptocurrency, like Bitcoin, as a legitimate way to pay state fees.
If the board agrees, it would mark the first time Ohio designates digital assets as an authorized “financial transaction device." That is the exact term Grewal recently spoke out, saying cryptocurrency could and should be recognized this way.
Ohio’s not new to crypto. A few years back, the state briefly let businesses pay taxes in Bitcoin, but the effort was shut down after legal issues over how it was set up. This time, officials say they are following the right process from the start.
The idea is simple: let people and businesses use crypto through a state-approved payment processor, just like they would with a credit card. The value gets converted to dollars, and the state gets paid - clean and by the book.
Grewal's framing in three words captures something straightforward - crypto does not need to be viewed as something different, and Ohio's initiative is all about incorporating digital payments into their daily government operations. If it works, it could set a precedent for other states to follow.
Vladislav Sopov