Eurozone looks to embrace Bitcoin with taxes and regulation
There are many different ways a power structure deals with an up and coming threats to their empire. Â They can either ignore it, attempt to suppress it, seek to dominate it, or lastly, initiate programs to co-opt it.
The last option seems to be the one that the Eurozone is choosing to embark upon as on Dec. 15, Europe’s top banker, along with Switzerland, are mulling proposals to not only recognize Bitcoin as a viable currency, but to then impose capital gains and retail taxes in Bitcoin purchases and trading.
People holding virtual currencies may be subject to value-added or capital gains taxes, the EBA said.
The government of Norway, Scandinaviaâ€™s richest nation, said it would treat Bitcoins as an asset and levy capital gains tax on them. – Zerohedge
Report from Swiss Parliament:
If it is approved by parliament, it will be submitted before the Federal Council, Switzerlandâ€™s principal executive institution. If the Federal Council agrees that bitcoin should be treated like other foreign currencies, it will also evaluate how to implementÂ the postulate. In addition, the executive was asked to examine the potential bitcoin-related opportunities for the Swiss financial sector.
The postulate petitions the executive branch to reply to four basic questions: whether or not bitcoin represents an opportunity for the financial sector, should bitcoin be treated as a foreign currency, what regulatory instruments should be used to establish legal certainty for bitcoin and similar currencies, and what sort of regulatory changes are needed and when can they be implemented. – Coindesk
The amazing thing about Bitcoin is that it is not any different than every sovereign currency being used today throughout the world, but its primary benefit to consumers is that it is the singular form of money not controlled by government or privately owned central banks. Â Thus the most viable option being proposed by state run agencies to depress its growing power is to publicly accept the currency, and then seek to co-opt it through regulatory controls.
In essence, don’t go after the currency itself, but tax and regulate those who use it.
Even though Bitcoin is only 4 years old, and has several more years of creation before the money supply tops out at 21 million coins, the revelation that Bitcoin is not only becoming an acceptable form of money is not being lost on the banks and government cartels that control the primary forms of money in the world. Â And while Bitcoin was initially meant to be a medium for trade between the masses of people who wanted to leave the current manipulated system of fiat money, it will be interesting to watch its evolution, or subsequent failure, in the coming days, months, and years as the cartels seek to limit Bitcoin’s power, scope, and mission.
Kenneth Schortgen JrÂ isÂ a writer forÂ Secretsofthefed.com,Â Examiner.com, and hostsÂ the popularÂ web blog,Â The Daily Economist.Â Ken can alsoÂ be heard Friday evenings giving an weekly economic report on theÂ Angel Clark radio show.