by Legalizing Payment of Salaries In Cryptocurrency.
New Zealand has become the first country in the world to legally back companies allowing employees to be paid in cryptocurrency, the Financial Times reports.
"The ruling by New Zealand’s tax authority allows salaries and wages to be paid in cryptocurrencies such as bitcoin from September 1, as long as the payments are in regular, fixed amounts. The digital currency of choice must also be pegged to at least one regular currency and must be able to be converted directly into a standard form of payment."
With currencies across the world being devalued at a rapid pace, many people are putting their faith in bitcoin as a medium of exchange and store of value. Although it is still unorthodox to receive payments in bitcoin because of its volatility, there are seamless ways around this problem. At the same time, when currencies like the Argentine Peso drop 20% dollar-wise in a single day, is it really that crazy to accept bitcoin?
The state of Ohio already allows payment of taxes for businesses via bitcoin through the website OhioCrypto.com, where they can register to pay everything from cigarette sales taxes to employee withholding taxes. With expanding financial infrastructure enabling bitcoin as a medium of exchange and gold approaching all-time highs due to global instability and central banks printing money like it’s going out of style, it is only a matter of time until bitcoin becomes the go-to hedge against currency devaluation and the $15 trillion in negative-yielding government bonds worldwide.
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