New Zealand: Cryptocurrencies take another step as payment of salaries through cryptocurrency is legalized

New Zealand: Cryptocurrencies take another step as payment of salaries through cryptocurrency is legalized

Over the past year, the use of cryptocurrencies around the world has been taking great leaps and more is yet to come. The latest move, though can be considered to be a vital step to the future of cryptocurrencies as New Zealand makes history by becoming the first country to pay their workers’ salaries through cryptocurrencies.

This was made known to members of the public through their tax agency. However, the condition for this to take place was that the cryptocurrency which was to be used had to be uniform or have a particular standard when compared to fiat currencies. Another requirement was that it should be possible to convert the cryptocurrency which is chosen by the worker to another form of payment, preferably the fiat currencies.

One of the cryptocurrencies which would meet this demand would be the bitcoin. Starting from the first week of September, the bitcoin is now expected to play a very prominent role in the payment of salaries in the country. It is worth remembering that plan to make this possible were first addressed on August 7th. These plans also explained how the country was optimistic to pay employees their bonuses through the use of cryptocurrencies. However, anyone who can be described as self-employed would not be eligible to convert their income to any cryptocurrency. The reason for this is that the opportunity is only for those who fall under the income tax scheme which is being managed by the government.

There are so many talking points from this move which was made by New Zealand. The use of the cryptocurrencies in place of the fiat currencies is still dividing opinions. One reason for this is because of the unregulated nature of the coins. One reason though why it remains popular amongst people is that the cryptocurrencies can often not be tracked to where they have been transferred. This solves the problem of fraud and other related issues.

Thomas Hulme who is a legal practitioner was quick to point out that the fact that the government has decided to use bitcoin as a means of payment is proof that the government acknowledges that most persons now prefer to use the bitcoin daily.

Most cryptocurrencies are enjoying an increase in their fortunes as the ongoing trade wars continue to frighten investors from all over the world. However, the bitcoin which hit the $20,000 mark late in 2017 is still some way apart from that peak right now. The decision from New Zealand is just the latest news as Facebook has also announced the start of a new cryptocurrency. Libra, as it is called, would certainly ignite the interest which people have always had in cryptocurrencies.

As time ebbs away, the end to all fiat currencies is looking nearer. With the rate at which countries try to integrate the cryptocurrencies, it might not be too long after all for us to see a global currency.

photo source: © by Mc_Cloud
photo source: © by r.classen

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Comments (1)

  1. cryptoratedump

    Bitcoin and other cryptocurrencies have been on a persistent upswing this year, but they’re still pretty volatile. But during a time when even some of the most developed economies in the word are watching their currencies bounce around like the Argentine peso (just take a look at a six-month chart for GBPUSD), New Zealand has decided to take the plunge and become the first country to legalize payment in bitcoin, the FT reports.

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