While it does make sense in our mind to spend some resources on it. I still don't understand this from a government point of view. What do they gain from it? People are going to be paying their taxes either way, they don't have a choice, it's not like they're opening a new market or gaining new consumers of a product -- they tax people regardless of if they use bitcoin or not.
It sounds great in principle to all of this, but it's really a good deal of wasting resources and stuff when it comes down to the fact that people are going to be paying either way and have the ability to pay from a bank account / debit card / credit card (maybe in some areas)
It reduces friction. It's possible a few people might cough up where they might not have with the extra ball ache of returning to USD. Again it depends on the type of tax. I can well believe tons of people try to dodge capital gains. You can't really escape property taxes.
I mean when it comes to the 10 businesses using it, they're going to be paying things like sales tax, corporate tax, payroll taxes, etc. I'm assuming the only things the state allows them to pay in bitcoin is going to be (if there is corporate tax in the state of Ohio, then corporate tax) and state sales tax. The rest wouldn't work.
Sales tax is pretty simple -- cause all you're doing is remitting the money that you collected from purchases on a daily basis.
Corporate Tax is where you COULD (not legally) fudge the numbers.
Will it reduce the friction? Yes, that's without a doubt tree for the small amount of companies that deal in crypto. Is it worth it for the government to spend these resources? I don't think so, as people are going to have to pay these taxes either way.
I'd love to see it happen, I just don't see the pros for the other side.