Australia's Gold Coast Mayor Ignores Cryptocurrency Volatility, Suggests Using It to Pay Taxes

Australia's Gold Coast mayor Tom Tate said residents could pay local taxes in cryptocurrencies in the next few years, but critics point to cryptocurrencies' volatility and recent market crash as worrisome.

On June 5, a week before the local council is due to announce its annual budget, Tate said in an interview with local media ABC News: "If the risk is not high, why can't we pay taxes in cryptocurrencies?" "The volatility is not that serious. "

In 2012, Tate was elected mayor of Gold Coast, Australia's sixth largest city, in 2016 for a second term and in 2020 for a third term. He added that the move has not been confirmed, but they are looking ahead.

"It sends a signal that we're innovating and bringing the younger generation in... (but) I'm not saying we're doing that, I'm just saying we're always thinking about the next level."

However, critics believe that during a market crash, the price volatility of cryptocurrencies may dampen enthusiasm for using cryptocurrencies as a means of payment.

In an interview with ABC News, Adam Poulton of Blockchain Australia pointed out that local councils need to consider their risk appetite before deciding to adopt cryptocurrencies as a payment method.

The mayor's comments come as a growing number of cities and countries around the world are considering allowing the use of cryptocurrencies and central bank digital currencies (CBDCs) to pay local taxes.

In April, Prime Minister Philip Davis of the Bahamas announced plans to allow residents to pay taxes by using the country’s central bank digital currency, the Sand Dollar.

That same month, it was revealed that residents of three major Chinese cities began using the digital yuan to pay taxes, stamp duties, and social insurance premiums.

Other regions that have announced that they are considering or will adopt cryptocurrencies for tax purposes include the Swiss city of Lugano, Buenos Aires, Colorado, Rio de Janeiro and the Central African Republic.

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