Another MP proposes to receive his salary in crypto
So guys, get this. I've been planning to write a piece on the Merge at Ethereum since- barring a few minor glitches on March 15th- it appears as though the way has been cleared for a complete transitioning of the network to proof of stake later this year. Cue the round of applause for a more eco-friendly and sustainable Ethereum.
And since this process is unprecedented in crypto history, there's been a lot of buzz on crypto markets about it lately and a lot of speculation. And so I thought it might be timely for us to chat about ETH's move to proof of stake and what the implications might be for the network as well as for other competitor projects.
But, as with everything in the crypto-verse, things have been moving pretty quickly, and the ink had hardly dried on the proverbial page of my article when I heard of some other developments I wanted to discuss, particularly since they were more or less in line with my previous article about the evolution of money.
In the first instance, Rolando Brison, a member of parliament on the tiny Caribbean province of Sint Maarten, recently announced that he would accept his salary in Bitcoin Cash.
Sint Maarten politician accepts payment in crypto
Sint Maarten is a province of the Netherland's which shares its borders with France's St Martin. Covering just about 34 square miles (I can be corrected on this), the island is the smallest land mass in the world to be shared by two countries. Rolando Brison, is a member of parliament, leader of the United People's Party, and an outspoken crypto advocate.
Now why is this news, you may think. Brison is certainly not the first politician to announce an intention to accept salaries in cryptocurrency though, to be fair, he makes the case that he is the first government official to accept payments in Bitcoin Cash.
Near the end of 2021, Miami Mayor Francis Suarez said he would take his pay in Bitcoin as he sought to expand the use of cryptocurrency across the city.
New York Mayor Eric Adams also announced that he would accept his pay in Bitcoin and Ethereum at the beginning of this year.
And altogether, to date, there has been no move as big as El Salvador's. In addition to making Bitcoin legal tender in the country, the government announced plans to issue a $1 billion Bitcoin bond. The bond was originally planned for issue in March of this year, but the move has since been postponed pending better market conditions.
Back in Sint Maarten, however, Brison is not only proposing to take his own salary in cryptocurrency, he is also proposing to make Bitcoin Cash legal tender on the island and, together with NFT transactions, exempt from capital gains tax.
And in response to a critical comment under his tweet labelling BCH as a volatile asset, Brison explains that BCH is already widely used on the island and could serve as a hedge (this is me paraphrasing here) to the "volatility of the USD".
Now, guys, while Brison's incendiary statement has attracted a lot of attention as I am sure it was intended to, I don't think his announcement is going to move the needle much- if at all.
So why then am I making a deal of it, you may wonder. Well, for one, when you think of it in macro terms, the move towards adoption by more countries, even countries as small as Sint Maarten, further strengthens the case for cryptocurrency's longevity as I alluded to in my previous article. Further, it does draw positive attention to BCH, and I'd definitely support that.
However, I was also interested in the MP's stated intention to make Sint Maarten the crypto capital of the Caribbean. This is certainly a lofty aspiration since there are a number other Caribbean nations which pride themselves on financial services, chief among them the Cayman Islands which already positions itself as a global financial services provider, and which also quietly provides a relatively friendly climate for digital asset acquisition and trade.
Thailand Bans Crypto Payments
Meanwhile, in Thailand, the Security and Exchange Commission (SEC) has announced plans to ban crypto payments come April of this year. According to a CoinDesk article, Thailand Bans Crypto as Means of Payment, the Thai Security and Exchange Commission's justification for this move is due to money laundering concerns and the inability of the country's central bank to provide assistance. The SEC was however clear that the move was not an outright ban on crypto trading. Rather, CoinDesk notes that " crypto trades on government approved exchanges will be exempt from a 7% value-added-tax (VAT) until 2023".
On this development, I think we're going to continue to see countries adopt varying approaches in their attempt to strike a balance between embracing digital innovation and regulation. Me? I'm just sitting and waiting on the El Salvadorian Bitcoin bond.
But guys, seriously, what do you think of these developments? Do you think they're worthy of notice?
I'd tell you this. I grew up in the Caribbean on an island as small as Sint Maarten (well, no, it was bigger, but you get the point) and on that island there was a proverbial saying, "Every drop fills a bucket." The idea behind that saying was even incremental changes add up, right? So, for me, when countries like Sint Maarten explore cryptocurrency, I won't shrug and turn away, I'm interested in every country's move towards acceptance.
On another note though, I'm curious. What are your thoughts on accepting salaries in cryptocurrency? I mean, I certainly would. I'm a huge fan of quick payments, let me tell you. But what about you? Would you be scared by cryptocurrency's inherent volatility? Or would you jump in with both feet? I'd love to hear your thoughts.
Well, guys, I'm off again. I'm thinking of trying a bit of futures trading, tentatively at first, of course, only to see if I like it more than margin. I'll be sure to share my experience with you at the end of it. In the meantime, and until we chat again, please remember to be safe. Arrivederci!
Resources
This article was previously published on my PublishOx account under the pseudonym, iHODL.
https://www.coindesk.com/business/2022/03/22/el-salvador-postpones-planned-bitcoin-bond-report/
https://www.coindesk.com/policy/2022/03/23/thailand-bans-crypto-as-means-of-payment/
It is a good sign that government officials of different nations showcase BCH, promoting its use case to the people via news media. Things will move if and only if the common shopkeepers use a BCH payment facility. The payment facility should compare with other payment facilities, such as credit cards, etc.