"The volatility is not that bad” - Australia’s Gold Coast civil authority suggests crypto might be used to pay local taxes within the future.
Tom Tate, the mayor of Gold Coast, Australia, has instructed that cryptocurrency could be used by residents to pay native taxes in future years, tho' critics have flagged volatility and the recent market crash as a cause for concern.
"Why cannot we pay rates on cryptocurrency if the chance isn't high?" said Tate, speaking to native media outlet first principle News on June five, simply over a week before the council is thanks to pass on its annual budget. "The volatility isn't that bad.”
Tate was elected as mayor of the Gold Coast, Australia’s sixth-largest town in 2012, and has tried a popular selection since then, as he was re-elected for a second term in 2016 and a 3rd term in 2020. He added that the move hasn't been confirmed but they were trying ahead.
"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.”
However, critics have argued that the price volatility of cryptocurrencies amidst a market crash may dampen enthusiasm to take crypto as payment.
Speaking to ABC News, Blockchain Australia’s Adam Poulton noted that the council would wish to look at its risk appetite before deciding to take cryptocurrency as payment.
"The last thing they'd want to try to to is to do $2,000 price of rates, hold it in Bitcoin, and for the Bitcoin value to halve," he said.
The Mayor’s comments come as an increasing number of cities and countries across the world have began to contemplate allowing crypto and central bank digital currencies to be used to pay local taxes and rates.
( Felix NG, Cointelegraph, 2022 )