I wonder if Ohio thinks this will cut down on cryptocurrency-related tax avoidance. I hope not many coiners pay their tax bills this way. It's providing them a possible way to identify your wallets and transaction history.
I hope my state will do the same. Even if the government has to sell it on the market to get the fiat, it is still good for the demand of bitcoin in the process.
How so? People aren't going to buy coins to pay taxes. Bitcoin holders might spend coins on taxes, though. And the government will turn around and sell them for fiat. It seems demand-neutral, but encourages more selling on the market.