• Disclosure
  • Privacy Policy
  • DMCA Policy
  • CCPA
  • Medical Disclaimer
Sunday, February 5, 2023
Lubbock County News Online
  • Home
  • News
  • Business
  • Technology
    • Crytpocurrency
    • Gaming
    • Gadgets
  • Sports
  • Health
  • General
    • Business Services
  • Travel
  • Press Releases
  • Popular
No Result
View All Result
  • Home
  • News
  • Business
  • Technology
    • Crytpocurrency
    • Gaming
    • Gadgets
  • Sports
  • Health
  • General
    • Business Services
  • Travel
  • Press Releases
  • Popular
No Result
View All Result
No Result
View All Result
Home Technology Crytpocurrency

Analysis | Politicians’ Crypto Stunts Are Mostly Hype, But Harmless – The Washington Post

Share on FacebookShare on Twitter

The mayors of Miami and New York City have taken their salaries in cryptocurrencies. An Arizona state legislator wants to declare Bitcoin legal tender. From Florida to Wyoming, state and local officials have put forth or even carried out plans to accept various taxes in digital tokens — developments sometimes touted as a challenge to the U.S. dollar’s dominance.

Is crypto suddenly becoming official? Hardly. The attention being paid to these efforts far exceeds their likely consequences. As long as people aren’t inclined or compelled to take them too seriously, then governments should be free to experiment as they see fit.

The hype surrounding virtual assets and blockchain technology isn’t entirely unjustified. Properly regulated, digital currencies — issued by either private organizations or by the government — could save consumers and businesses hundreds of billions of dollars in transaction fees, connect more people to the formal banking system, and simplify international payments. They could even make the whole financial system more resilient, by reducing its reliance on a small group of crisis-prone banks.

Story continues below advertisement

Yet that brilliant future remains distant, and the state and local initiatives at issue have little to do with making it happen. On the contrary, they appear largely performative, aimed at generating publicity and latching on to the current crypto frenzy, which has more to do with zero-sum speculation than with creating value and improving the financial system. 

As things stand, getting paid or paying taxes in digital tokens is far from appealing. Most cryptocurrencies are too volatile for such purposes: The dollar value of New York City Mayor Eric Adams’s first crypto paycheck, for example, fell an estimated 15% in the first days after he received it. Tokens tied to the dollar aren’t particularly reliable either. Transacting in virtual coins can entail processing snags and unpredictable fees, or require trusting intermediaries that don’t meet traditional standards. Then there’s the ever-present risk of losing one’s crypto or having it stolen.

The greatest danger is that the proposals would somehow convince or coerce people into using crypto or jeopardize public finances by requiring governments to hold the stuff. In Arizona’s case, for example, “legal tender” status could be interpreted to require the acceptance of Bitcoin to settle debts — though the draft legislation doesn’t specify, and would probably be unconstitutional if it did. Wyoming’s initiative involving sales and use taxes could potentially leave the state holding crypto, which would be an obvious danger to taxpayers. (In most such schemes, crypto payments are immediately converted to dollars.)

Story continues below advertisement

Control for such risks, however, and there’s not much harm in being creative. Most of the proposals may never come to fruition. And the rare initiatives to actually operate have been short-lived. A 2018 Ohio effort to receive business taxes in crypto reportedly attracted fewer than 10 participants before being shut down. In Seminole County, Florida, former tax collector Joel Greenberg’s attempt to accept fees and property taxes in Bitcoin had precisely zero takers (before he resigned and pleaded guilty to various federal offenses).

One can’t help but appreciate the irony of officials rushing to embrace crypto, a movement originally aimed at obviating the need for central authorities. That said, there’s nothing wrong with a bit of experimentation, if it doesn’t harm anyone and might induce some added innovation. Just don’t mistake it for the legitimization of a technology that still has a long way to go.

Editorials are written by the Bloomberg Opinion editorial board.

©2022 Bloomberg L.P.

Lubbock County News Online

© 2021 Lubbock County News Online

Navigate Site

  • Disclosure
  • Privacy Policy
  • DMCA Policy
  • CCPA
  • Medical Disclaimer

Follow Us

No Result
View All Result
  • Home
  • DMCA Policy
  • Medical Disclaimer
  • Privacy Policy
  • Disclosure
  • CCPA
  • Terms of Use

© 2021 Lubbock County News Online

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT