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So the bills will resurface during the next bubble?

Now would be the perfect time to start accepting those payments if they planned to anyway, but ok.

Indeed. I find it weird they did not foresee a crash, given the volatility nature of crypto.
Ugh. Colorado isn’t allowing crypto payments.

They are partnering with a payment processor who will sell your crypto for a fee and remit US dollars to the state.

The state does not have a wallet, and they will never touch your crypto in the transaction.

By this logic they also accept any currency in the world.

In this context, it’s like paying your taxes with stocks, since the transfer of your crypto to this intermediary will generate a taxable event itself.
Your butcher doesn't ever handle any of the assets of the US Treasury, either.

Holy wow, this is new heights for the anti-cryptocurrency mental gymnastics.

They're accepting cryptocurrency for payments at the point of transaction. Full-stop.

Parking tickets and other fees are payable in most jurisdictions — just pay their card processing fee!

What's the difference here?

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The dollars from you are transferred directly to them in some cases. The fee goes to the processor. The difference is that the bill is denominated in dollars and satisfied in dollars. You have no option but to make sure that the state gets dollars at the end of the day. The state has no interest in holding crypto, never holds or touches crypto and won’t accept it if you go to the tax payers office. If I show up to the tax office with a bag of dollars they are legally obligated to accept it at face value. If I show up with crypto they tell me to go to a third party who will give me a non negotiable rate to turn that crypto into dollars. How are these two situations at all the same?

With dollars you aren’t selling an asset to a third party who then gives dollars to the government on your behalf. You also don’t create an additional reporting burden in regards to the IRS.

I work for a firm that specializes in payments from constituents to governments. I know this space pretty well.