Gold Coast Mayor Tom Tate has steered that charges could possibly be paid with cryptocurrency in future years, regardless of the market crashing by $2 trillion — greater than half of its whole worth — over the previous six months.
Key factors:
- A charges enhance of about 4 per cent is anticipated for Gold Coast residents this yr
- It’s highest in a decade however under CPI of 5.1 per cent
- The mayor says utilizing cryptocurrency would ship an revolutionary “sign” to youthful ratepayers, however a tutorial says extra analysis is required
Because the council prepares handy down its annual price range on June 14, Gold Coast residents can count on to see a rates rise of at least 4 per cent — the very best enhance in 10 years.
However Mr Tate has additionally introduced that council will search to rent a chief funding officer from the personal sector to encourage “innovation” and examine “joint ventures” on council-owned land.
“Why cannot we pay charges on cryptocurrency if the chance isn’t excessive?” he mentioned.
“It sends a sign that we’re revolutionary and convey within the youthful technology … [but] I am not saying we’re doing it, I am simply saying we’re at all times wanting on the subsequent degree.”
Whereas a nationwide blockchain business group has welcomed the prospect, a cryptocurrency researcher has urged extra warning.
Council wants ‘danger urge for food’
The underlying thought of cryptocurrency is that it creates a method of payment that cuts out the middleman, like a financial institution.
Whereas many discover the know-how complicated, chair of business physique Blockchain Australia Adam Poulton mentioned cryptocurrency was “simply one other type of cash” with an change fee linked to the Australian greenback.
“They will select to obtain that Bitcoin and maintain it themselves, or they’ll really change that Bitcoin into Australian {dollars}, referencing that change fee, and have these Australian {dollars} flip up of their checking account.”
However contemplating the worth fluctuations cryptocurrencies experience, together with the existence of scams and the latest market crash, Mr Poulton mentioned “the council would want to take a look at [its] danger urge for food”.
“The very last thing they’d wish to do is settle for $2,000 price of charges, maintain it in Bitcoin and for the Bitcoin value to halve,” he mentioned.
“The opposite danger is the Bitcoin may go up in worth they usually’ll even have three or 4 thousand {dollars}.”
He mentioned council may as an alternative settle for 95 per cent of a charges invoice in Australian {dollars} and the remaining 5 per cent in cryptocurrency.
“We’re glad to danger that different 5 per cent and really maintain that and see what future use circumstances could possibly be used with it,” he mentioned.
“However there’s lots of stuff you must develop into conversant in to make use of and work together with cryptocurrency in a protected option to shield your monetary wealth.”
Extra time wanted for training
Affiliate Professor Vallipuram Muthukkumarasamy from Griffith College’s Faculty of Info and Communication Expertise mentioned the mainstreaming of cryptocurrency had been spoken about for years however it nonetheless remained a “speculative funding”.
“In 2015, in that period, numerous hype was there pondering ‘it may take over in a yr or two’,” he mentioned.
He mentioned whereas the underlying know-how had “lots of alternative”, implementing it was the problem when it got here to giant bureaucratic organisations like native authorities.
“It is a paradigm shift, it is a new know-how,” he mentioned.
“Council charges, it is open for that, it is definitively a risk however then acceptance, verifying the know-how and implementing that, are points.
“A number of studying must occur and the boldness constructing must occur with that.”
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