While speaking to ABC News on June 5, Tom Tate, the Mayor of Gold Coast, Australia said that in the future residents could pay taxes in crypto. However, critics of cryptocurrencies have highlighted volatility and market crashes over the years as a cause of concern.
Tom questioned that if the risk is not high, why can we pay rates on cryptocurrencies. He further went on to say that the volatility is bad enough to ignore the market altogether.
The volatility is not that bad.
In 2012, Tate was first elected as Mayor of Australia’s sixth-largest city, the Gold Coast. Since then he has proven himself to be the popular choice among residents. He was re-elected for a second term in 2016 and a third term in 2020.
Although the move is not finalised, the mayor said that it sends a signal to the younger generation that the authorities in power are pro-innovation.
I’m not saying we’re doing it, I’m just saying we’re always looking at the next level.
Blockchain Australia’s Adam Poulton was also interviewed by ABC news. He said that the council would have to look into the matter and assess its risk appetite before taking such a decision. The last thing the authorities would like is to accept Bitcoin at a higher price level, hold it, and then see their holdings halve.
An increasing number of countries around the world have started allowing cryptocurrencies or CBDCs to be used to pay local taxes and rates. A law legalizing cryptocurrencies and recognizing Bitcoin as a legally recognized currency was signed in April by CAR President Faustin Archange Touadera.
In the same month, three major Chinese cities started accepting taxes in state-issued digital Yuan or China’s CBDC. Other nations or provinces which have either announced or are considering accepting crypto include Argentina, the Bahamas, the Swiss city of Lugano and Rio de Janerio.