Recently, Tom Tate, Major of Gold Coast In Australia, mentioned crypto payment. The Mayor believes people can use cryptos to pay for local taxes. However, various officials have cited the issue of volatility as a significant obstacle.
On the 5th of June, Tate told ABC News that;
“The volatility in the crypto sector is not so bad. Why can we not bear the rates on crypto? Accepting crypto will show we are innovative and attract younger generations. However, I am not saying we are going to do it. It is still under consideration as part of future plans.”
Tate became the Mayor of Gold Coast In 2012 and was re-elected in 2016. Also, he got elected for a third tenure in 2020. He confirmed that preparations are still ongoing to adopt crypto payment.
Several Hurdles Impede The Usage Of Crypto
Unfortunately, several criticisms have hit the usage of crypto for payment. Critics believe volatility and market crisis in the crypto sector should discourage the idea.
Adam Poulton from Blockchain Australia noted that risk considerations are essential. Poulton believes there are risks associated with using crypto payment. Hence, authorities need to consider how much they are willing to risk.
“No institution would want to accept $2000 worth of Bitcoin only for price to drop by 50% the next day, ” he added.
The suggestion of Mayor Tate comes as more cities embrace the idea of crypto payment. Several countries now allow citizens to pay taxes using crypto and CBDCs.
Meanwhile, over $113 million have been lost to crypto scams in the past five months. Hence, Australians are warned to avoid all forms of crypto investment.
According to the Australian Competition and Consumer Commission (ACCC), Australians have lost over $205 million to crypto investment scams.
Crypto-regulations, A Top Priority For New Administration
After the recent election in Australia, the Labour Party emerged victorious. The elected prime minister, Anthony Albanese, will have various duties to perform. Among his main priorities will be to foster crypto and blockchain development.
Furthermore, the next government will look at drafting a law for the crypto industry. Caroline Bowler of BTC Markets stated that regulatory authorities have one primary concern. The main concern is to ensure proper regulation while allowing for innovation.
The regulatory agency has turned its attention to the crypto asset sector. In May, the Australian Taxes Office (ATO) highlighted one of its primary goals for 2022.
The agency stated that monitoring crypto taxation is part of its priority. In addition, it expects Australians to report crypto gains on their yearly tax returns.