The virtual money market continues to evolve, and cryptocurrency has already become one of the ways to pay. This happened in New Zealand, which became the first country in the world where employers were legally allowed to pay salaries in electronic coins. The innovation has been recognized at the government level, and the tax department of the state considers the cryptocurrency to be the official income of employees, having issued the corresponding tax rules. The new order will start on September 1 and will last for at least the next three years.
Under the new rules, a New Zealand resident will be able to regularly receive wages (in whole or in part) in digital assets for their labor functions, which are spelled out in the employment contract. Also, the cryptocurrency allows payments of various bonuses, premiums and other additional sources of income.
Of course, the new payment scheme is subject to certain conditions. So, such payments, like the usual methods of receiving a salary, must be made regularly. In addition, the rate of cryptocurrencies must correspond to the exact equivalent of standard money. Thus, digital currency, as a means of calculation, must be convertible and pegged, for example, to dollars.
From now on in New Zealand, wages in the form of virtual payments are equal to standard income and are subject to income tax. However, for freelancers, the prospect of earning income in cryptocurrency is still limited.
What others have
In addition to New Zealand, large companies in other countries also use digital coins as a way to pay their employees for work. In Japan, cryptocurrency is now considered the legal tender. This status has a legal basis, and virtual transactions in Japan are becoming more common.
But China can go the farthest, which is preparing the state circulation of cryptocurrency within the country. According to Bloomberg, the PRC government is working to create a digital state asset, and the People's Bank of the country is preparing to issue a state cryptocurrency. China has been considered one of the main digital currency markets since 2017. At that time, up to 80% of all mining resources in the world were actively operating on its territory. Basically, the places of their locations were remote provincial areas, which was explained by the low level of energy prices.
At the same time, now there are no bans related to digital money in China. Residents of the country can buy cryptocurrency in exchange for national yuan, have savings in it. In addition, individuals and companies can acquire a mobile wallet and use crypto money as a means of payment and settlement.
The Topic of Article: New Zealand legalized cryptocurrency as a way to pay wages.