Using Bitcoin is still a very problematic venture in most parts of the world. Very few regular purchases or bills can be paid with Bitcoin as of right now. In Toronto, Canada, things may come to change in this regard. One city councilor has proposed the idea of using cryptocurrencies to pay for property taxes, among other things. This is a rather interesting idea, although this proposal has yet to be voted on. It is highly unlikely such a proposal will get the necessary votes to become official legislation, though.
It would certainly be interesting to pay bills or taxes with Bitcoin. Up until now, that has been pretty much impossible in any part of the world. There are some exceptions, although they often rely on intermediary services. Toronto may soon become the exception in this regard. City councilor Norm Kelly proposed the idea of using cryptocurrencies to pay for property taxes. It would also apply to land transfer taxes, parking violations, and utilities. An intriguing idea, although one that probably won’t be approved.
Toronto Will look into Bitcoin
To put this into perspective, this is still an idea. It should not be considered to be an official guideline of any kind at this stage. Kelly plans to ask the city council about this idea at the next meeting on January 31st. Whether or not this idea will fall on deaf ears, remains to be determined. It is very likely few city officials will even pay attention to this concept. After all, Bitcoin doesn’t have the best of reputations these days. Moreover, its price volatility can prove to be a major roadblock for such payments.
At the same time, the public interest in Bitcoin has never been higher. This is also notable in Toronto, where cryptocurrency discussions are more common these days. Governments would do well to look into BTC as a potential payment option for specific costs. There are plenty of advantages to using Bitcoin, although the currency also comes with its own risks and challenges. Finding the right balance between risk and reward will not be easy.
How this situation will play out in Toronto, remains to be seen. The city likes to portray itself as a leader in technological innovation. Paying attention to cryptocurrencies such as Bitcoin would fall in line with that image. Someone has to be the first to look into the options otherwise considered to be ineffective. If this idea turns into legislation, it would set a global precedent for governments to follow. There is no reason to think things will turn out in a positive manner, though. At the same time, a lot of people will eagerly await the decision of the Toronto city council meeting later this month.
Header image courtesy of Shutterstock