For cryptocurrencies, the main problem faced today is gaining credibility. This process has been ongoing for nearly a decade without any significant success. Things have begun looking up again in this regard, at least where Bitcoin is concerned. New Zealand’s recent Tax Information Bulletin confirms Bitcoin is now a legal form of payment. This can introduce some prominent changes for employees and employers in the Kiwi nation.
Getting Paid in Bitcoin
Although it may take many more years until Bitcoin becomes a payment currency, things are looking up in New Zealand. In a recent change, it became apparent that employees can now be legally paid in cryptocurrency. More specifically, a dedicated framework has been created to allow for such transactions. This does not apply to self-employed individuals, however, as they have always been free to deal with payment methods as they see fit.
What is rather interesting is how there are crucial conditions to adhere to. Employees who receive [part of] their wage in Bitcoin must sell the coins immediately. They are not allowed to hold on to the funds and hope for a slight profit while doing so. Additionally, employees can only accept cryptocurrencies which can be converted to fiat currency without any problems. Most altcoins will not be eligible in this regard, as very few of them have fiat currency gateways at this time.
Bitcoin Meets the Criteria
Considering how governments around the world seem to dislike Bitcoin, this change comes at a crucial stage. According to New Zealand officials, Bitcoin meets all payment criteria. That seems to contradict the stance most major countries have taken on cryptocurrencies. Even within the community, not everyone agrees Bitcoin can be deemed a payment method. The lack of fungibility is one of the key hurdles which can’t be overcome all that easily.
Despite being a form of payment, other questions remain in place. New Zealand law dictates cryptocurrencies have the legal status of property instead of money. That can lead to some very interesting consequences down the line. Furthermore, Bitcoin is now subject to taxation guidelines in the country, which means recipients will need to adhere to these guidelines accordingly. That will undoubtedly spark some controversial discussions in the country over the years to come.
Altcoins Aren’t Important
If the official document is anything to go by, it shows altcoins do not matter. Not only is Bitcoin mentioned nearly two dozen times, altcoins aren’t part of the equation at all. This seems to confirm the rules are drafted specifically for BTC payments only. Combined with the rising Bitcoin Dominance Index, it is evident which cryptocurrency matters to people. For now, that does not include any of the altcoins, regardless of their current market cap. No one should expect a major BTC price pump because of this document, though.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency.