New Zealand is the first country to show flexibility towards cryptocurrency and has authorized its use for the disbursement of salaries. A large segment of the population is already willing to embrace cryptocurrencies making the Kiwis one of the most crypto currency friendly countries in the world.
September 1 will be a landmark in the financial history of New Zealand. It has legalized the usage of cryptocurrencies to be sued for the payment of salaries! This remarkable decision comes in the backdrop of a global adoption of cryptocurrencies and blockchain network. The country has regulated the cryptocurrency to be chosen and pegged into a conventional currency and directly convertible for regular modes of payment. Thus, the stipulation would allow the replacement of New Zealand Dollars with Bitcoins in the check payouts of employees in government and nongovernmental organization.
The country’s tax has also authorized the same but has laid a guideline that the cryptocurrency requires to be tagged to a regular fiat currency. The country also mandates the crypto choice to be easily convertible to a regular mode of payment.
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According to Thomas Hulme, a solicitor from a leading London based law firm, the workforce of New Zealand is willing to get paid in cryptocurrencies. This is one of the major reasons why the government thought of regularizing the entire payment pattern.
The Inland Revenue Department of Wellington has already defined crypto assets as a set of property noting that they cannot be defined as money which does not make them come under the purview of a legal tender. However, they also added that there are certain aspects about cryptos which are similar to real money. Such features can be coined as being highly divisible and impossible to clone or fake! When viewed from the perspective of an investment option, the cryptocurrencies have always gained the notoriety of being volatile. Earlier this year, Facebook came under the spotlight with its decision to launch its own cryptocurrency known as Libra.
Apart from flexibility with bitcoins, the country has a fair amount of flexibility when it comes to cryptocurrencies. The same approach is also expected to pave a path for blockchain development in the country since it has already exhibited strong inclination towards crypto!
Some of the major ways in which it would with adaptation towards blockchain are:
- It would open up New Zealand’s economy to world class business opportunities and entrepreneurs who would generate revenue and sustainable capital for frontline cultural, social and economic development. Tourism, agriculture and science and technology would also benefit significantly from blockchain development.
- It would result in high value employment opportunities which would give the Kiwis greater access to a lot of high end offshore projects. Successful development of these projects would align the country with other leading providers of blockchain services.
- Lead to the overall cost reduction which would in turn help the economy in saving a lot of cost and utilizing the same for developmental activities
- Cryptocurrencies and blockchain will be a significant adoption in the next 5 years. Countries which already have a planned policy towards it would benefit from it in the long run.