Payment of cryptocurrency wages is now possible in New Zealand

in crypto •  5 years ago  (edited)


New Zealand has recently ratified a law authorizing the payment of cryptocurrency wages.

Subject to the law governing the taxation of income


Effective 1 September this year, this law will be implemented for a period of three years , which would allow New Zealand companies to pay cryptocurrencies for their employees.

However, this new option would only be available to employees who work under a formal contract, to the detriment of the self-employed who will be excluded from this system.

Indeed, all cryptocurrency payments will be treated as real payments, in the same way as regular payments in New Zealand, and will therefore be subject to the 2007 Income Tax Act. Thus, the country's tax revenues would certainly rise.

https://twitter.com/FT/status/1160972140386148352

A selective measure for the crypto-currencies concerned


In order to protect employees from possible price fluctuations on the cryptocurrency market, as well as the bad faith of some employers, the New Zealand authority has set a limit.

Salary payments in digital assets must be made with stablecoins , digital assets whose value is backed by one or more fiduciary currencies, thus excluding many cryptocurrencies, including Bitcoin, because of its hypervolatility.

What do you think of the authorization of the collection of wages in cryptocurrencies would support the en masse adoption of these assets? Tell us your opinion in the comment section below.

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