Innisfil, a town in Ontario, Canada, is ready to embrace digital currencies after its council voted in favor of a one-year cryptocurrency pilot project which will enable people to pay property taxes with bitcoin (BTC), reports CBC, March 28, 2019.
Pay Property Tax with Bitcoin
Cryptocurrencies continue to gain ground the world over with the latest adoption story being that the residents of Innisfil can now pay property taxes with Bitcoin. However, it’s worth highlighting that the payment will not reach the concerned government authorities in cryptocurrency.
Innisfil has partnered with digital currency payment processing service Coinberry Pay which will convert the payer’s crypto holdings into Canadian dollar and transfer it to the town.
The one-year pilot project which is scheduled to begin from April 2019 will allow the residents of the small town of 36,000 people to do their property taxes in a novel manner.
The town’s Mayor, Lynn Dollin, says that Innisfil’s embracement of cryptocurrencies shows that it’s an innovative community that is ready for the future.
The report by CBC adds that in the future, the option to pay in other cryptocurrencies such as ether (ETH), litecoin (LTC), bitcoin cash (BCH) and Ripple’s XRP might also be introduced on the payment platform.
Cryptocurrency, a Double-Edged Sword?
The timing of this initiative is interesting as it comes amidst an ongoing crisis related to Canadian cryptocurrency exchange QuadrigaCX.
The controversial story surrounding the now-defunct exchange has rekindled concerns related to custody, safety, and accessibility of cryptocurrencies. Unlike fiat, cryptocurrencies are not backed by any central bank or government body which makes it a risky alternative for some people.
However, the same characteristic of digital currencies has also benefitted many in economically troubled countries like Venezuela and Turkey whose national currencies have crashed heavily under mounting hyperinflation.
Following the Ohio Example
As reported by BTCManager on November 26, 2018, the U.S. state of Ohio became the first in the country to allow payment of taxes with bitcoin. The decision is widely viewed as a huge impetus for the adoption of cryptocurrencies en masse.
To ensure that the new pro-crypto initiative taken by Ohio isn’t limited to paper, on January 4, 2019, online retail giant Overstock announced that it will pay a part of its Ohio state business tax with bitcoin.