The Mayor of Gold Coast, Australia, Tom Tate has proposed that cryptocurrency could be used by residents to pay local taxes in the future, though critics have pointed out volatility and the recent market crash as a cause for concern.
Tate was elected as Mayor of the Gold Coast, which is the sixth-largest city , and has been a popular choice since then, as he was re-elected for a second term in 2016 and a third term in 2020. He added that the move hasn’t been confirmed but they were looking ahead at potential opportunities.
Critics have argued that the price volatility of cryptocurrencies amidst a market crash could reduce the enthusiasm to take crypto as payment.
Blockchain Australia’s Adam Poulton stated that the council would need to look at its risk appetite before deciding to take cryptocurrency as payment. The Mayor’s comments come as an increasing number of cities and countries across the world have started to consider allowing crypto and central bank digital currencies to be used to pay local taxes and rates.
In April, Philip Davis the Bahamian Prime Minister publicized plans to allow residents to pay taxes through the use of the country’s central bank digital currency. In another report it was revealed that residents in three major Chinese cities have begun paying tax, stamp duty, and social security premiums using the country’s digital Yuan.
