If Bitcoins does become a Legal Tender, it would be amazing for all the crypto users in the world since there would be way more options, less tax, freedom to choose another payment method etc. It can finally be used not only as an investment but also as a currency, which can in turn expand the whole ecosystem..
It can finally become a one world currency. I do understand the Volatility might play a significant role but at the same time, people might have better access to international transactions and businesses are gonna flourish even more.
The probelm would be Government and Banks, taking it as a COMPETITION, whereas they should take it as a synergistic relationship, where both parties can grow.
I do think this would definitely happen in the future but it depends on the government for sure, how fluid they are with the whole thing. ( Till then countries like El Salvador, will definitely get a head start )
Topic: Will governments capitulate and finally recognize Bitcoin as a legal tender? - page 4. (Read 441 times)
October 07, 2021, 12:27:19 PM
October 07, 2021, 10:45:13 AM
Why all the complications? It is easy to change the laws related to commodities, and if countries see that more people are buying bitcoin, they will start setting up separate law-projects related with cryptocurrency, but most of the time they will be considered assets of a special nature
For example:
- any transfers less than $10,000 are not taxed.
- If you own a certain value of cryptocurrencies, you must report it to the authorities.
- All platforms that buy and sell bitcoins need to ask members for KYC.
- Centralized platforms are set up and thus stores and shops are allowed to accept Bitcoin using these platforms.
Generally, things will not change unless the demand increases, which is directly related to the price, meaning that we need a market capacity of 5 trillion to see some changes.
For example:
- any transfers less than $10,000 are not taxed.
- If you own a certain value of cryptocurrencies, you must report it to the authorities.
- All platforms that buy and sell bitcoins need to ask members for KYC.
- Centralized platforms are set up and thus stores and shops are allowed to accept Bitcoin using these platforms.
Generally, things will not change unless the demand increases, which is directly related to the price, meaning that we need a market capacity of 5 trillion to see some changes.
October 07, 2021, 10:23:16 AM
countries like brazil or panama will apply the same way how el salvador do that their local currency will work along with BTC.
for first world countries i think will also do the same but with CBDC coin. it may take another cycle before they will decide to also make BTC a legal tender. right now they will have to take advantage of printing more of their currency, its more favorable.
for first world countries i think will also do the same but with CBDC coin. it may take another cycle before they will decide to also make BTC a legal tender. right now they will have to take advantage of printing more of their currency, its more favorable.
October 07, 2021, 10:08:47 AM
venenzuela should be next. their country needs to get out of the shit very quickly before their entire economy collapses.
It's not going to help them, they need a new leader that cares for them and at the same time helps the people and the country, not someone who's just a product of another bad government and someone who hires a secret organization to protect and destroy dissidents and oppositions. October 07, 2021, 10:02:38 AM
venenzuela should be next. their country needs to get out of the shit very quickly before their entire economy collapses.
October 07, 2021, 12:24:09 AM
You can add Tonga to that list
source: https://stockhead.com.au/cryptocurrency/tonga-might-consider-bitcoin-as-legal-tender-if-laser-focused-mp-gets-his-way/
This is the key:
Countries that are remittance-dependent, like El Salvador and Tonga, will probably be the first ones to make Bitcoin legal tender.
Other countries will probably want to keep their capital gains tax.
source: https://stockhead.com.au/cryptocurrency/tonga-might-consider-bitcoin-as-legal-tender-if-laser-focused-mp-gets-his-way/
This is the key:
Quote
“To get those remittances to Tonga, Western Union takes a 30 per cent bite out of them, on average. It can be 50 per cent. In El Salvador, it’s closer to 50 per cent. So, our GDP in 2020 was $US510 million, 40 per cent of that is just over $US200 million so 30 per cent of that or $US60 million is fees alone to Western Union.”
Countries that are remittance-dependent, like El Salvador and Tonga, will probably be the first ones to make Bitcoin legal tender.
Other countries will probably want to keep their capital gains tax.
October 06, 2021, 11:37:09 PM
Superpower countries will be the hardest one to budge in, other countries wouldn't have that much problem so I am pretty sure that this is going to be a chain reaction that has the superpowers at the end of the domino line.
October 06, 2021, 11:19:47 PM
After El Salvador regulated Bitcoin as legal tender, other countries are tempted to follow in its footsteps:
Brazil Set To Adopt Bitcoin As Its Legal Tender
Panama unveils bill to make Bitcoin legal tender
Ukraine could soon become the second country to adopt Bitcoin as legal tender
Obviously these are countries that have seen an opportunity, but it is much more difficult for countries like the USA, EU countries, Australia, etc. to do so. So far Bitcoin has been regulated in most countries as (intangible) property. Consequently, it has also been taxed so that every time you spend Bitcoin you should declare and pay taxes. If you buy $1,000 of Bitcoin, the price goes up 10% and you buy a $5 coffee at Starbucks, you will owe taxes on 10% of that $5. If the next day the price of Bitcoin goes down and it is only 5% above your initial investment, when you make a purchase you will also owe taxes but only on 5%.
This, as I explained in another thread, makes it difficult for Bitcoin to be used as a day-to-day currency. In order to keep track of all transactions and pay taxes correctly you should rely on some App or some kind of software that keeps track of transactions and does the calculations for you. This means giving up your privacy and giving your purchase data to a centralized entity.
However, if Bitcoin is recognized as a legal tender, you will no longer have to pay taxes for buying coffees. In the same way that you don't have to pay taxes when you shop at the supermarket in dollars because the dollar has appreciated 2% against the euro in the last day.
I understand that the governments of the most economically powerful countries are going to be much more reticent than El Salvador and others who are seeing an opportunity.
On the one hand, if they make it legal to tender, they will lose money to be collected in direct taxes, and on the other hand they will lose at least part of the power they have with the massive printing of currency.
That is why I wonder if in the future, more and more countries will pass legislation that considers Bitcoin legal to tender and in the end the more economically powerful countries will have to capitulate and do the same.
What do you think?
Brazil Set To Adopt Bitcoin As Its Legal Tender
Panama unveils bill to make Bitcoin legal tender
Ukraine could soon become the second country to adopt Bitcoin as legal tender
Obviously these are countries that have seen an opportunity, but it is much more difficult for countries like the USA, EU countries, Australia, etc. to do so. So far Bitcoin has been regulated in most countries as (intangible) property. Consequently, it has also been taxed so that every time you spend Bitcoin you should declare and pay taxes. If you buy $1,000 of Bitcoin, the price goes up 10% and you buy a $5 coffee at Starbucks, you will owe taxes on 10% of that $5. If the next day the price of Bitcoin goes down and it is only 5% above your initial investment, when you make a purchase you will also owe taxes but only on 5%.
This, as I explained in another thread, makes it difficult for Bitcoin to be used as a day-to-day currency. In order to keep track of all transactions and pay taxes correctly you should rely on some App or some kind of software that keeps track of transactions and does the calculations for you. This means giving up your privacy and giving your purchase data to a centralized entity.
However, if Bitcoin is recognized as a legal tender, you will no longer have to pay taxes for buying coffees. In the same way that you don't have to pay taxes when you shop at the supermarket in dollars because the dollar has appreciated 2% against the euro in the last day.
I understand that the governments of the most economically powerful countries are going to be much more reticent than El Salvador and others who are seeing an opportunity.
On the one hand, if they make it legal to tender, they will lose money to be collected in direct taxes, and on the other hand they will lose at least part of the power they have with the massive printing of currency.
That is why I wonder if in the future, more and more countries will pass legislation that considers Bitcoin legal to tender and in the end the more economically powerful countries will have to capitulate and do the same.
What do you think?
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