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Americans can use cryptocurrencies to pay for driver's license in Colorado
Crypto/dollar settlement process will be online via payments giant PayPal
The Division of Motor Vehicles (DMV) of the Colorado State Department of Renewals announced last week that it will accept cryptocurrency payments for driver's license and vehicle licensing renewal services. According to the official statement, the settlement process will be done online through the payment giant PayPal.
“Anyone who chooses to pay with cryptocurrencies will be directed to PayPal, where they can select a specific cryptocurrency to use for payment”, says an excerpt from the note. According to the DMV, the assets chosen by the customer will be converted into dollars and then sent to the agency's coffers.
“At the DMV, we are always looking for ways to better serve Colorado citizens and leverage technology to deliver our services,” commented DMV Director Electra Bustle.
“This new online cryptocurrency payment option is yet another way the DMV is providing innovative and convenient services to our customers,” added Bustle.
According to the DMV, citizens who choose to pay online with cryptocurrencies will have to pay a service fee of $1 plus 1.83% of the total, in addition to PayPal's own settlement service fees.
The value of the fees are in line with other payment settlement services, such as Visa and Mastercard, according to a survey carried out by the site.
PayPal and Cryptocurrencies
At the beginning of August, PayPal took another step in the cryptocurrency industry by launching its own stablecoin, PayPal USD (PYUSD), a project that had been stopped at the beginning of the year. At the time, PayPal feared the risk of complications with the SEC, according to foreign media.
PYUSD is the first proprietary stablecoin launched by a major financial company outside the crypto space. This represents an important step towards the adoption of digital currencies as means of payment in everyday life.
A stablecoin is a cryptocurrency that tracks the price of a fiat currency, such as the dollar or pound sterling. Currently, the leaders in this sector are Tether with USDT and Circle with USDC.