Tom Tate, Mayor of Gold Coast in Australia, suggested that residents could use cryptocurrency to pay their local taxes in the future. However, critics have raised concerns about volatility and the recent market crash.
“Why should we not pay rates for cryptocurrency, if there is no high risk?” Tate spoke to ABC News in June 5th, just a week before council will hand down its annual budget. “The volatility isn’t that bad.”
Tate was elected Mayor of the Gold Coast in 2012, Australia’s sixth largest city. He has been a popular choice ever since, being re-elected in 2016 for a second term and again in 2020. Tate said that although the move had not been confirmed, they were still looking forward.
It sends a message that we are innovative and bring in younger generations… I’m not saying that we do it, but I am saying we’re constantly looking at the next level.”
Critics have suggested that crypto-payments could be less popular if there is volatility in the prices of cryptocurrency.
Adam Poulton, Blockchain Australia’s CEO, stated that before accepting cryptocurrency payments as payment, the council should assess its risk appetite.
He stated that they would not accept rates of $2,000, keep it in Bitcoin and expect the Bitcoin price to drop by half.
These comments by the Mayor come as increasing numbers of countries and cities around the globe are considering allowing central bank digital currencies and crypto to be used for local taxes and rates.
Related: NAB and ANZ are not supporting retail speculation in crypto.
The Bahamian Prime Minister Philip Davis announced plans in April to allow residents to pay taxes using the central bank’s digital currency (CBDC), known as the Sand Dollar.
It was also revealed that three Chinese cities had begun paying stamp duty, tax, and social security premiums with the country’s CBDC digital currency.
Other regions that have indicated they are considering or would adopt cryptocurrencies to pay taxes include Lugano in Switzerland, Buenos Aires and Rio de Janeiro.
Eileen Wilson –Technology and Energy
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