NZ has become the very first country to legalize cryptocurrency salaries, according to a report on Monday from the Financial Times.
The country’s tax agency has ordered that wages and salaries will be paid in cryptocurrencies as long as the preferred digital coin is secured to at least one standard or fiat currency of NZ. New Zealand also expects that the cryptocurrency of choice could be directly converted into a standard form of payment. This allows BCC which is Bitcoin, known as the world’s largest cryptocurrency to serve as a form of payment for NZ workers whenever the law goes into effect September 1.
The decision was originally filed in a note on August 7 which also mentioned New Zealand’s plans to allow for bonuses to be paid in cryptocurrency. Although, the salary option will still come under the nation’s income tax scheme, while the ruling excludes self-employed workers from changing their income into cryptocurrency.
This move brings the controversial digital currency or asset further into the area of everyday payment methods. Cryptocurrencies are relatively free of regulation because their untrackable features helped them grow famous with anonymous online purchases. Thomas Hulme, the solicitor at the London-based law firm Mackrell Turner Garrett, said to the FT, “The move has also served as another step towards governments recognizing and understanding that people were waiting to be paid in cryptocurrencies.”
Cryptocurrencies are considered a novel as well as a volatile investment asset. BCC, ie Bitcoin currently trades at a 1.5 year high, rising as investors flee stocks on trade-war concerns. As per December 2017, It is still down about 42% from its record high price of nearly $20,000 per coin.
New Zealand’s decision comes nearly after 2 months when Facebook announced its own cryptocurrency, named Libra. Although the reveal stoked privacy concerns from investors or government officials alike the tech giant’s interest in digital currency added new legitimacy to the technology.
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