1 year ago
93 An Australian mayor has stated that the current volatility within the cryptocurrency sector is not as bad as has been painted. Tom Tate, who is the Mayor of Gold Coast, Australia, suggested that crypto-assets can be used by residents to pay taxes in the future. While many governments and institutions are flagging the volatility of cryptocurrencies as a major cause of concern, Tate believes the enthusiasm for crypto will not be affected.
“Why can’t we pay rates on cryptocurrency if the risk is not high?” he said, adding that the volatility is not too bad, because the market has shown over the years that it can correct itself.
Tate was elected as the Mayor of Gold Coast in 2012. Since then he has warmed up the hearts of residents, becoming a popular choice for most people. He was re-elected in 2016 and 2021. Tate stated that the move to allow people to pay their taxes with crypto has not been confirmed, although the city is considering something in the future.
He added that the consideration shows that the city is innovative and wants to take the younger generation along.
Critics Fault Tate’s Stance On Crypto Payment
Tate’s stance on crypto is not shared by some people, who have criticized the decision to consider tax payments using cryptocurrencies.
The critics argued that the price volatility of crypto assets during a period of poor performance in the market could decide to use them as payment a very bad one.
Adam Poulton of Blockchain Australia, while speaking to ABC News, stated that the council needs to consider the risk appetite before taking such a decision about crypto as payment.
He added that the last thing the council would want is to accept Bitcoin as payment for tax only for the price of the token to halve.
The Mayor’s comment is coming at a period several countries and governments are considering allowing people to pay their taxes with cryptocurrencies or central bank digital currencies CBDCs). Three major cities in China have already started accepting the country’s digital yuan for stamp duty and tax payments.
