As the world has gotten a front and center seat to the decline and collapse of the Greek financial system, one nation is seeking to change the way their economy views money. And in a move that would test the legitimacy of digital currencies as a recognized medium for trade and commerce, Australia on Aug. 4 is pursuing the option of making Bitcoin on par with theirs and other currencies in both taxation and the purchasing of goods and services.
The Australian government on Tuesday suggested treating bitcoin and other digital currencies on a par with standard money in the country. The move comes in contrast to an earlier position towards digital currencies as “intangible assets.”“The committee is of the view that digital currency should be treated as money for the purposes of goods and services tax,” a report from Australian Senate Economics References Committee said.The committee recommended to amend last year’s decision by the Australian Taxation Office (ATO), which stated bitcoin was a commodity, “neither money nor a foreign currency,“ and should be taxed accordingly.Anglo-Australian bitcoin exchange CoinJar, the Bitcoin Foundation and the Bitcoin Association of Australia were among 48 organizations that submitted information to the committee. – Russia Today
The move towards a more stable form of money is something that has been circulating around the world since the 2008 Credit Crisis, and the advent of massive Quantitative Easing programs that infused tens of trillions of dollars, euros, and other currencies into the global financial system. But as we have seen in places like Southern Europe, Cyprus, and even France, increasing fiat money printing to try to increase liquidity does not stop inflation from entering into the general economy, or stem the devaluation of purchasing power for users no matter how much central banks try to slow down the velocity of money.
All money, no matter if it is fiat or backed by a hard asset, is grounded in one simple concept… confidence. And as confidence in the current fiat system continues to wane, and confidence in digital currencies continues to grow, it is in the best interest of nations like Australia to co-opt its use in commerce and trade rather than to try to fight it and force people into moving towards an underground economy.
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com, Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.