Bitcoin vs. Credit Cards: The Future of Tax Payments in Toronto

The Case for Bitcoin in Tax Payments

Evan Kuhn, the co-founder of Coinberry, a Toronto-based cryptocurrency exchange, is making waves by claiming that Bitcoin is more efficient for paying taxes than your average bank card. He argues that the fees associated with credit card transactions can be a financial drain, especially when municipalities are involved.

Fees That Make You Go “Hmm…”

Kuhn highlights a striking difference between credit card fees and Coinberry’s rates. While credit card companies often charge around a hefty 3%, Coinberry only takes 0.5%. That’s like comparing a grand buffet feast to a sad corner slice of pizza—both fill you up, but one is clearly better for your wallet!

The Mechanics of Bitcoin Tax Payments

Let’s break down how this process works. Coinberry acts as a bridge, facilitating the transformation of Bitcoin into Canadian dollars. Local municipalities might not be recognized for holding cryptocurrencies due to their unpredictable nature, but that doesn’t stop them from getting paid in it!

• Step 1: You pay your taxes in Bitcoin.
• Step 2: Coinberry converts that Bitcoin to Canadian dollars.
• Step 3: The converted funds land in the hands of the municipalities.

Voilà! It’s like magic, except with a lot more math and fewer rabbits.

Rolling Out the Bitcoin Welcome Mat

Richmond Hill has taken the initiative to accept Bitcoin for property tax payments as of July, following in the blockchain footprints of Innisfil, which started a similar trial earlier this year. So far, the response seems rosy—everyone loves paying taxes with new-age tech!

When Will Toronto Get on Board?

Former Toronto councillor Norm Kelly brought up the idea of accepting Bitcoin for taxes back in January 2018. However, like many great ideas that collect dust, this proposal hasn’t quite made its comeback. According to communications adviser Ashley Hammill, for Toronto to reconsider, a new motion must be pushed by a council member. Come on, Toronto—let’s not get left behind in the digital age!

Conclusion: The Future is Now

In the overlap of tradition and innovation, Bitcoin is showing that it might just be the fresh spritz of lemon the taxation world needs. With lower fees and speedy processing, the question remains: Is it time for other municipalities to hop on the Bitcoin bandwagon?