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Canada: economists put their fingers on flexible regulations for Bitcoins prosperous future

Monday 2 June 2014 13:17 CET | News

The Montreal Economic Institute has published a study which brings to the fore the idea that digital currency can develop itself only if the legal environment supports it, coindesk.com reports.

The institute argues that, on the one hand, retailers, consumers and investors should be aware that a clear set of rules governing Bitcoin is in place, and these rules would instil confidence, boost adoption and jumpstart investments in Bitcoin companies whereas, on the other hand, the government should not impose high taxes on crypto-currency related transactions.

The researchers found that Canada is the second setting place for venture capital invested in Bitcoin firms which culminates with an increase in jobs and economic activity generated by the industry in question.

Government acceptance, nevertheless, is not synonymous with official recognition of Bitcoin as a currency or legal tender but, rather, that Bitcoin’s fiscal status will not prevent it from being used in a similar manner to a currency, the research suggests.

China and Russia, which have both responded negatively to the perceived threat of Bitcoin , are cited as examples of what not to do, whereas New York’s BitLicence scheme is viewed as a generally positive step. However, the institute remains cautious and believes that the programme needs to be evaluated.


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Keywords: Canada, China, Russia, regulations, Bitcoin, future, digital currency, crypto-currency, taxes
Categories: Payments & Commerce
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Countries: World
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