Australian mayor suggests crypto as tax payment option Australian mayor suggests crypto as tax payment option
Gold Coast Mayor Tom Tate has revealed that the city could be open to accepting its taxes with cryptocurrencies like Bitcoin despite the volatile nature of the industry.
2 min read
Updated: Jun. 7, 2022 at 3:33 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Gold Coast Mayor Tom Tate has said residents could pay taxes and rates with cryptocurrency in the future, even as critics and experts point to volatility as a major concern, ABC News reported.
Tate reportedly said, “Why can’t we pay rates on cryptocurrency if the risk is not high?” The council plans to submit its annual budget in the next few days, and residents can expect at least a 4% rise in rates.
He also clarified that this is not a done deal, but something the council considers saying the industry’s volatile nature is not an issue.
“It sends a signal that we’re innovative and bring in the younger generation … [but] I’m not saying we’re doing it, I’m just saying we’re always looking at the next level.”
Mr. Tate became Gold Coast mayor in 2012 and is currently serving his third term in office.
Experts believe market volatility will impede adoption
With the crypto market losing about $2 trillion from its market cap in 6 months, experts believe now might not be the best time to adopt crypto for tax payments.
According to the chair of Blockchain Australia, Adam Poulton, the council will need to examine its risk appetite. He added that while the value of Bitcoin could rise, there is also the possibility of it falling.
In his words,
“The last thing they’d want to do is accept $2,000 worth of rates, hold it in Bitcoin and for the Bitcoin price to halve. The other risk is the Bitcoin could go up in value, and they’ll actually have three or four thousand dollars.”
Poulton advised that the council could accept 95% of its rate bill in fiat and the remaining 5% in cryptocurrency.
“We’re happy to risk that other five percent and actually hold that and see what future use cases could be used with it.”
The mayor also said the city plans to hire a chief investment officer to encourage innovation and identify joint ventures for the council.
Several cities are now turning to digital assets for investments and paying taxes. According to reports, residents from three prominent Chinese cities now use digital yuan for taxes, social security premiums, and stamp duties.
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Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.