Virtual money market continues to develop, and the cryptocurrency has already become one of the means of payment. This happened in New Zealand, which became the first country in the world to legally allow employers to pay their salaries in digital coins. The innovation is recognized at the government level, and the state tax authority considers the cryptocurrency to be the official income of employees, releasing the relevant taxation rules. The new procedure will start on September 1 and will last at least three years.
Under the new rules, New Zealanders will be able to receive regular payrolls (in whole or in part) in digital assets for their employment functions, which are specified in their employment contract. Cryptocurrency also allows the payment of various bonuses, and other additional sources of income.
Of course, the new payment scheme is subject to certain conditions. Thus, such payments, like the usual methods of salary payment, should be made regularly. In addition, the rate of cryptocurrency should correspond to the exact equivalent of standard money. Thus, the digital currency, as a means of settlement, should be convertible and linked, for example, to dollars.
In New Zealand, salaries in the form of virtual payments are now equal to standard income and are subject to income tax. However, for freelancers, the prospect of receiving income in cryptocurrency is still limited.
And what about others?
In addition to New Zealand, large companies in other countries also use digital coins as a way of paying their employees remuneration for their work. In Japan, cryptocurrency is now considered an official means of payment. This status has a legal basis, and virtual transactions in Japan are becoming increasingly common.
But China can go the furthest, preparing the national circulation of cryptocurrencies within the country. According to Bloomberg, the Chinese government is working to create a digital state asset, and the People’s Bank of the country is preparing to release the state cryptocurrency. China is considered to be one of the main digital currency markets since 2017. At that time, up to 80% of all mining resources of the world were actively operating on its territory. Their locations were mainly located in remote provincial areas, which was explained by the low level of energy prices.
At the same time, there are currently no prohibitions related to digital money in China. Residents of the country can buy cryptocurrency in exchange for national yuan and have savings in it. In addition, individuals and companies can obtain a mobile wallet and use crypto money as a means of payment.