New Zealand salaries to be paid in cryptocurrencies from September 1
New Zealand has become the first country to legalize salary payments in cryptocurrencies, Financial Time s has reported.
The country's tax office published a ruling making it legal for companies to pay their employees in cryptocurrencies on the condition that the value of the crypto-asset is pegged to one or more fiat currencies.
New Zealand authorities also require that the chosen cryptocurrency be directly convertible into a standard form of payment., B92 news portal writes.
According to the report from Business Insider, the ruling allows bitcoin – world's largest cryptocurrency by market cap – to serve as a form of payment for New Zealand workers when the law goes into effect September 1.
Draft Law has officially been submitted on August 7 and it also details New Zealand's plans to allow for bonuses to be paid in cryptocurrency.
This salary option will fall under national tax income system but the new law excludes the self-employed workers from switching their salaries into cryptocurrency.
The move is another step towards bringing the controversial digital currency into everyday payment methods.
Cryptocurrencies are relatively free of regulations and their untrackable nature has made them popular with anonymous online purchases