One of the big questions people have when considering cryptocurrencies is, “Can I pay my bills with Bitcoin?” (or another cryptocurrency). The short answer is yes… and no. It is possible, but it depends where you live.
For example, Australian residents can access a platform for cryptocurrency payments – called Living Room of Satoshi – to pay bills using Bitcoin, Bitcoin Cash, Bitcore, Dash, Dogecoin, Ethereum, Ethereum Classic, Litecoin, Monero, PIVX, Steem and Zcash. Anything from rent, phone bills, utility bills, school fees, credit cards, or even taxes can be paid by converting crypto assets to Australian dollars. Living Room of Satoshi is a Queensland-based company awarded the “Best New Startup in Australia.” Since its launch in May 2014, Living Room for Satoshi has processed over $400,000 AUD for Bitcoin.
US residents can use Welto’s integration with crypto trading platform Coinbase, that allows customers to spend their cryptocurrencies on real goods and services. The service was launched in 2017. Developers are currently planning to expand their services globally, allowing customers to pay bills using Bitcoin, Crown, Ethereum, Ethereum Classic, Litecoin and Zencash with a bill limit of $300 and a flat commission rate of 2%. Due in part to taxation issues at Coinbase, adoption has been slow. In 2017, the IRS seized Coinbase customer account records in an attempt to identify investors who had over $20,000 in transactions – and in their case, any Bitcoin transaction (including something like paying the phone bill) is subject to capital gains tax.
Although new platforms are attempting integrating cryptocurrencies with bill payments and more users are becoming aware of the possibilities, regulation and taxation will drive mass adoption of using cryptocurrencies to pay everyday bills.