The virus is still spreading as nations are realizing the merits of embracing this life-changing innovation and technology. New Zealand has become the first country to legalize Bitcoin as a digital property and a currency to pay employees paychecks thus salaries and wages where the state requires that if Bitcoin or any other crypto will be paid in a form of a paycheck, that particular crypto is to be pegged with the state standard currency which is the New Zealand Dollar.
The state also emphasized that, in a case where other altcoins apart from Bitcoin being paid as paychecks and conversion to the state standard currency become an issue, then they use the USD or EURO for the conversion to have a more accurate conversion to be able to carry on with all taxable events like deducting income tax through a plan they call “pay-as-you-earn” where companies paying salaries can just deduct the income tax straight away.
Therefore, for Bitcoin and other crypto businesses to run smoothly in New Zealand, it is required to be pegged on a standard currency and also be acquired on a purpose to be able to record any disposal that creates a realized gains or loss, in order to record taxable events. Mostly swapping other cryptos for another, exchanging crypto to fiat is the once generally known as taxable events but it goes beyond that, using crypto to purchase goods and services are as well taxable events but buying crypto with fiat is not a taxable event. Capital gains are taxable events.
This is a huge step nations are taking, hypothetically and the outcome will be great for states who embrace Bitcoin, cryptocurrencies, and Blockchain technology as no one can avoid the future. For you can hide but when it is time, it is just what it is and you cannot avoid that. It is not ideal for anyone or even the government to avoid the future of finance as technology like Blockchain/Cryptocurrency creating the pace already.
Other states are still on the sidelines working things out, you can just criticize but you will eventually join sooner or later.
I Am CryptoRas.
