The year has been nothing short of a roller-coaster for cryptocurrencies, with Bitcoin, in particular, soaring to new heights. After China’s significant strides to boost Bitcoin, Russia quickly followed suit. Now, the tide of change has made its way to Australia, causing the digital currency landscape there to teeter at the brink of a substantial breakthrough.
The Australian government, in a noteworthy move, has indicated in its 2017-2018 budget summary that it will categorise Bitcoin—a prominent digital currency—as it would traditional money. This acknowledgement is a crucial step forward for digital currencies in the mainstream financial sphere.
In a progressive attempt to stimulate business in digital currencies, the Australian government is endeavouring to do away with the double taxation of transactions executed in Bitcoin.
The government’s move is encapsulated in the following statement: “The Government will make it easier for new innovative digital currency businesses to operate in Australia. From 1 July 2017, purchases of digital currency will no longer be subject to the GST, allowing digital currencies to be treated just like money for GST purposes. Currently, consumers who use digital currencies can effectively bear GST twice: once on the purchase of the digital currency and once again on its use in exchange for other goods and services subject to the GST.”
Undoubtedly, embracing digital currencies has not been an easy road, even for developed nations, particularly Western ones. Yet, by tackling the double taxation obstacle head-on, Australia joins the ranks of nations like Russia in the race to harness the impressive potentials of Bitcoin. With an increasing number of institutions accepting Bitcoin, it’s evident that the digital currency’s influence is only growing—it’s just a matter of time before it sweeps across the globe, pulling more governments into the fold.
Drawing parallels with Russia, the government has expressed the need to officiate Bitcoin to counter the risk of money laundering via digital channels. This marked the first time that a major economy has explicitly exhibited interest in a cryptocurrency, signaling a potential turning point for this revolutionary financial instrument.
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Paul Balo is the founder of TechBooky and a highly skilled wireless communications professional with a strong background in cloud computing, offering extensive experience in designing, implementing, and managing wireless communication systems.
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