Government Cryptocurrencies, a Good Tax Alternative?

in #crypto2 years ago

Overall, I'm not against the idea of governments creating their own cryptocurrencies or building tokens on an established ecosystem in order to generate income for their jurisdictions. The concept of 'taxing' a portion of all mining fees that will be sent to a treasury address sounds pretty basic, so why shouldn't it be digital?

Governments need to reconsider their views on taxation. It's much better for a government to run their own blockchains and find ways to generate revenue (such as through mining fees or other approaches). If governments can utilize cryptocurrency to fill their treasuries, then people should be able to effectively call for significantly less taxes for physical goods.

In general, I'm not suggesting that digital currencies should replace physical ones, but they should complement one another. Governments shouldn't be taxing human beings anyways, but that's a pipe dream, so the next solution would be to use cryptocurrency. They may require people to pay in their 'Gov Token' for government related services or to pay retribution to the state. Perhaps collecting taxes in said token too.

The main important thing is choice under this scenario. Local - city, county and state - governments should be allowed to issue their own coins/tokens while the people should be free to use them or not. Although governments may hold a requirement in their respective tokens to pay for services, the people should still be free to use their other coins/tokens in private establishments that offer a payment system for them, such as Hive or Blurt. Other examples: Bitcoin, Dogecoin, Litecoin, etc.

Choice is important and if we believe in something we should support it privately. Governments are bad at innovation, so it's time for them to evolve. Don't tax cash transactions, take a cut from your blockchain instead. If people support your chain, then you can be successful if your leadership falters then people will dump. In the USA, American Dollars will always be an option.

What do you think of governments (including local) issuing their own cryptocurrencies?

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