New Zealand will legally allow companies to pay salaries in cryptocurrency starting September 1, becoming the first nation to do so, according to a Financial Times report. #Cryptocurrency #Blockchain #Crypto #Bitcoin https://t.co/JRUOC10lHJ
The country requires the preferred cryptocurrency to be pegged to a standard currency and directly convertible into a normal form of payment. This stipulation allows bitcoin to replace the New Zealand dollar on workers' paychecks.
What a bs title. Bitpay here in the US has had the option to take any % of salary as btc. Unsurprisingly, most employees took most of their salary as USD and maybe 10% as btc sort of as a lottery ticket approach.
This is misleading. They just ruled that any remuneration in crypto is subject to being taxed. I don't know if it is legal for crypto to be the entire salary packet - that would seem to violate our minimum employment rights (which you can't opt out of).
New Zealand has become the first country to legalize cryptocurrency salaries, according to a report Monday from the Financial Times.
The country's tax agency ruled salaries and wages may be paid in cryptocurrencies so long as the preferred digital coin is pegged to at least one standard, or fiat, currency. New Zealand also requires that the crypto of choice be directly convertible into a standard form of payment.
This allows bitcoin — the world's largest cryptocurrency by market cap — to serve as a form of payment for New Zealand workers when the law goes into effect September 1.
The decision was originally filed in an August 7 note, which also detailed New Zealand's plans to allow for bonuses to be paid in cryptocurrency. The salary option will still fall under the nation's income tax scheme, and the ruling excludes self-employed workers from switching their income to cryptocurrency.
The move brings the controversial digital asset further into the realm of everyday payment methods. Cryptocurrencies are relatively free of regulation, and their untrackable nature helped them grow popular with anonymous online purchases. The move serves as "another step towards governments recognizing that actually people are wanting to be paid in" cryptocurrencies, said Thomas Hulme, a solicitor at London-based law firm Mackrell Turner Garrett, to the FT.
Cryptocurrencies are also considered a novel — and volatile — investment asset. Bitcoin currently trades at a 19-month high, surging as investors flee stocks on trade-war fears. It's still down about 42% from its record high price of nearly $20,000 per coin in December 2017.
New Zealand's decision comes nearly two months after Facebook announced its own cryptocurrency, named Libra. Though the reveal stoked privacy concerns from investors and government officials alike, the tech giant's interest in digital currency added new legitimacy to the technology.
But because they have the option of being paid in NZD for the forseeable future it makes far more sense to pay people in NZD and have people that want to convert it to bitcoin. But if NZD would enter a significant volatile period companies would have a legal alternative open to them which might reduce economic harm somewhat.
That, and this might be used by small techie nerd companies as a gimmick, which harms noone but might be fun for that community.
Since the law does no harm and has some upside it seems like a fine idea to me.
Only if the dollar stays stable, there isn't a country that isn't backed by US dollar.... except for crypto so remember that. Fiat currencies have always gone to zero... always.... there has never been a time where it succeeded. Today the treasury reported that treasury bonds have inverted which only happens when??
Economists are also saying that this current trend shows this is going to be a currency recession not a housing bubble or .com bubble. so we will see. Hindsight is only 2020 not forsight.
Mining is overwhelmingly performed with renewable energy sources and miners are helping increase demand for renewables, which brings down cost as economy of scale grows. The narrative that Bitcoin mining is bad for the environment is completely misleading. Bitcoin does use an enormous amount of energy, but it's mostly renewable and is helping to make renewable energy more affordable for everyone.
Also just as anecdotal, Bitcoin enabled me to go 100% solar powered, and I know I'm not alone.
Also to clarify, mining is what enables bitcoin transactions to be secure. The purpose of mining is to secure transactions, the network incentivizes the security by providing a reward (the mined coins)
Please remember to follow the rules of this subreddit, particularly regarding the promotion of products, services, and/or agendas. Disregarding these rules may result in a temporary suspension or permanent ban from participating. If your content was removed or you've been banned, you can go to our crypto-court on Discord to discuss/appeal the decision.