Your Views: Which Innovative Ways Government Might Use To Expand Crypto Use

[JollyGood]

This is a big if but if a government one day decided to try to make crypto use wide spread among masses, what do you think they would do to achieve their goal?

We all know the current state of play with reluctance on part of governments that is why I said "if"....

On my part I would like to see tax free purchases of all property (such as houses, apartments, etc) where you pay to buy a property but you do not pay any tax.

Maybe there can be some strings attached such as the tax-free allowance would only be on condition of the property not being transferred to another name or not be re-sold for (say) 36 months either using fiat or crypto. If it does get sold within 36 months (using either fiat or crypto) then the full taxation from the sale of the property will be due to be paid within 30 days or 60 days.

However, if a sale of crypto-purchased property takes place after 36 months of it being last purchased and is sold in a fiat transaction then full tax will be due but if it was sold using crypto then no tax will be due.

What would be your ideal way to see a government introduce a crypto-friendly strategy with a view to trying to make it as a counterbalance to fiat?

[HarmonyA]

The major thing that government should do is to address the issue of cryptocurrency scams.  This is the worm that is slowly eating up the success of cryptocurrency.
No matter the innovativeness of any technology,  if the issue of scam is not addressed,  it will deter mass adoption.
Government should drawn upon scam in it entirety,  and sanction platforms which allow the promotion of scam crypto projects. This is my take

[X-ray]

I have an idea that crypto could be used for election. The crypto will not necessarily acts as something like currency but instead a token in which validates each vote preventing people from double voting. The election might also benefits immensely from the fact that all the votes recorded to the ledger and each address might be replaced with one's ID number and the nodes could be spread among states in order to reduce the chance of manipulation.

[ecnalubma]

Government might only encourage and expand the use of crypto if they can get benefits from it through effective taxation. As we know that government stance for crypto is firm but taxation and following the crafted regulations could be a one way pass to be recognize effectively.

[panganib999]

Without tax though, the government would cease to exist and improvements towards the country would stop. Kind of like the same concept why Exchanges ask for transaction fees/exchange fees, all because they need money to manage their exchange, as well as to promote its usage to increase volume traded and possible improvements in terms of front end and back end issues. Also, if we were to ever to completely use Crypto for everyday transactions, companies would hoard the coins cause of the payment done to them right? Same with the government with their public facilities. Probably think of a possible fix for these types of issues, especially since the supply of BTC is limited after all.

[Blitzboy]

I'm not sure my answer is correct, but think about the taxes the government gets. Taxes are the source of income for all governments, they are used to maintain the functioning of a government, no country can exist without taxes. They cannot quit taxes, they are required to collect taxes, and that's why the majority of governments do not accept cryptocurrencies. With all transaction without taxes, the government could not exist, everything would seem confused

[Wexnident]

At the bare minimum, show the same concept, flow, and idea that fiat has shown us over the years of its usage. If the core idea is lost, then it pretty much undermines the idea of changing fiat for crypto for the better good. There's also the possible issue of the coin itself not being circulated properly, just like how there is inequality between the rich and the poor right now. If BTC was implemented as replacement for example, with its limited supply, we can easily imagine the rich hoarding BTC for years, and the poor only getting poorer, especially if the supply gets thinned out with how much those rich people are hoarding the coins. Proper implementation of Salary payment, Cost of Goods and the like should be properly managed, hopefully by one single entity for the entire world, kinda like if thought of in games, the merchant guild.

I'm not sure my answer is correct, but think about the taxes the government gets. Taxes are the source of income for all governments, they are used to maintain the functioning of a government, no country can exist without taxes. They cannot quit taxes, they are required to collect taxes, and that's why the majority of governments do not accept cryptocurrencies. With all transaction without taxes, the government could not exist, everything would seem confused

Well, it isn't one of the innovative ways that the government might use but rather one of the things that the government should factor when implementing the expansion of crypto usage.

[Blitzboy]

Well, it isn't one of the innovative ways that the government might use but rather one of the things that the government should factor when implementing the expansion of crypto usage.

Although they do not know what their implementation or calculation is, there are some countries developing their own cryptocurrency, it seems they have realized the benefits of using cryptocurrencies or at least the way they use it to eliminate corruption. Specifically, I am referring to China, the largest corrupt country in the world.

[airdnasxela]

IF is possible, things I can think of are;
It could start with local governments like every local government official in every city can make ways to expand crypto awareness. (1)This promotion can be done by providing free seminars for students and those who wants to learn. If they really want to expand it, (2) shops that the government own or have partnerships with, can accept crypto payment just like any digital payment.

[avikz]

Daydreaming is sometimes good for health as it helps people to feel better. However, without going into the debate whether governments will ever push for decentralized crypto usage or not, let us take a look at the series of events which may be used for expanding crypto usage,

1. Make cryptos legal
2. Make banks accept cryptos over the counter as a normal currency
3. Create insured crypto custody services
4. Reduce the percentage of tax payable on crypto assets compared to conventional assets
5. Take steps to reduce electricity tariff drastically to promote mining
6. Make crypto mining equipments tax free
7. Make a mandate for big showrooms or movie halls to accept cryptos

But hey, don't get carried away! That's just not going to happen!

[alyssa85]

This is a big if but if a government one day decided to try to make crypto use wide spread among masses, what do you think they would do to achieve their goal?

After Brexit I fully expect the British government to legislate some crypto friendly rules. They want to make the City of London the focal point for fintech and for cryptocurrency, so that London remains the global hub for money regardless of whether that money is fiat or cryptocurrency.

[avatar_kiyoshi]

Only one thing can expand the use of crypto, making it legal worldwide and crypto can be used as a payment option anywhere. Taxes can also be paid using cryptocurrency, making public ledgers, so that they are transparent.

the problem in using cryptocurrency is activity by criminals, this is one of the problems that the government avoids, so it is very difficult to legalize cryptocurrency.

[btccashacc]

I have an idea that crypto could be used for election. The crypto will not necessarily acts as something like currency but instead a token in which validates each vote preventing people from double voting. The election might also benefits immensely from the fact that all the votes recorded to the ledger and each address might be replaced with one's ID number and the nodes could be spread among states in order to reduce the chance of manipulation.

I've been thinking about this, but with the transparency of blockchain I think it's not suited for election because people can see the transaction on the blockchain means that people can see who do you vote in fact the election must be private right? Well, at least they can make it private such a monero. To be honest this is one of the best implementations of the blockchain, make the election more secure and it will cut the cost. Imagine how much money that government can save if they implement this idea.

[msarro]

My take on this is that government will never work to promote use of decentralize cryptocurrency that they can’t control or manipulate. Only community backing cryptocurrency can do something to expand use of crypto. Scalability, price fluctuation, speculation are few things that need to be addressed in order to expand use of crypto in the world.

[Lucius]

~snip~

Looking at today's governments and the way monetary policy is set up, it's hard to imagine that in the near future we will see official incentives to use decentralized cryptocurrency, and by that, I mean primarily BTC. It is possible that such an attitude would become a reality if it were to encourage the use of a stable state-issued coin. Either way, it doesn't seem realistic to me that a government is saying that buying something like property is tax-free, since we know that effective tax collection is one of the cornerstones of every state.

We all know that BTC has been officially approved as a payment method in Germany and Japan, but even in such technologically and economically advanced countries, there has not been a massive adaptation. I think this is an obvious example that most people are still not ready for something new, and let's be honest, this new technology is still a little too complicated for the average person.

[merchantofzeny]

This is a big if but if a government one day decided to try to make crypto use wide spread among masses, what do you think they would do to achieve their goal?

Very simple - - they legislate to demonetize physical fiat and replace it with said crypto. 

Might not be the answer you were expecting but that's pretty much the only reason government might allow the current cryptos we have now to proliferate. Get people used to it as a mode of payment (like how most people now already have a credit or debit card) and then when they phase out their own fiat, people would already be familiar with it and it can be easily exchanged with the current cryptos they have, at the rate the government determines.

[Boov]

~snip~

Looking at today's governments and the way monetary policy is set up, it's hard to imagine that in the near future we will see official incentives to use decentralized cryptocurrency, and by that, I mean primarily BTC. It is possible that such an attitude would become a reality if it were to encourage the use of a stable state-issued coin. Either way, it doesn't seem realistic to me that a government is saying that buying something like property is tax-free, since we know that effective tax collection is one of the cornerstones of every state.

We all know that BTC has been officially approved as a payment method in Germany and Japan, but even in such technologically and economically advanced countries, there has not been a massive adaptation. I think this is an obvious example that most people are still not ready for something new, and let's be honest, this new technology is still a little too complicated for the average person.

Yes that's right pal! Yes it is given that there are some countries that legalizes bitcoin as a means of payment but admit or not, there are still more countries who does not supports cryptocurrencies as a means of payment or does not even know what a cryptocurrency is. So it means that not all the countries are ready for a quick change most especially for those countries that are not that successful. I will give myself as an example for this, before I entered crypto world wayback years ago, I dont have any ideas about it but my curiousity drives me to study about this and I admit that it takes a long process for me to fully understand what is all about cryptocurrency, how does it work and etc.

[webtricks]

This is a big if but if a government one day decided to try to make crypto use wide spread among masses, what do you think they would do to achieve their goal?

We all know the current state of play with reluctance on part of governments that is why I said "if"....

On my part I would like to see tax free purchases of all property (such as houses, apartments, etc) where you pay to buy a property but you do not pay any tax.

Maybe there can be some strings attached such as the tax-free allowance would only be on condition of the property not being transferred to another name or not be re-sold for (say) 36 months either using fiat or crypto. If it does get sold within 36 months (using either fiat or crypto) then the full taxation from the sale of the property will be due to be paid within 30 days or 60 days.

However, if a sale of crypto-purchased property takes place after 36 months of it being last purchased and is sold in a fiat transaction then full tax will be due but if it was sold using crypto then no tax will be due.

What would be your ideal way to see a government introduce a crypto-friendly strategy with a view to trying to make it as a counterbalance to fiat?

So you really think a government will first lose its control over economy by letting citizens use a cryptocurrency and then on the top of that, will let its revenue decrease by not taxing the remittances made in cryptocurrencies!!
That was quite an ask from a poor government. I would be happy even if my government just allow me to use cryptocurrencies for all kind of payments, no matter whether such transaction is taxable or not. With distinguishable advantages that crypto offer over traditional money, I don't think government need to promote the use of cryptocurrencies. It just have to give green signal and people will inevitably start using crypto right away.

[Hydrogen]

I think crypto is similar to gambling or legalized marijuana. Governments can potentially boost tax revenues, job markets and economies simply by legalizing these industries. The philippines could represent a classic example of this as I believe they have gone so far as to suspend taxes on their crypto industry to promote growth and development of the sector.

It is possible in the future, if recession sets in, many nations could seek to legalize things like gambling, legal cannabis and crypto in an effort to boost tax revenues, job markets, etc. It could represent a bare minimum towards staving off negative circumstances relating to large deficit growth.

As many have commented, crypto is relatively small atm in market capitalization and mass adoption. I think we should not ignore the precedent by which giants like google and apple had humble beginnings as small businesses operating out of garages. Its not crypto's current size or wealth that may be most relevent. We might do well to look at growth potential.

[JollyGood]

The major thing that government should do is to address the issue of cryptocurrency scams.  This is the worm that is slowly eating up the success of cryptocurrency.
No matter the innovativeness of any technology,  if the issue of scam is not addressed,  it will deter mass adoption.
Government should drawn upon scam in it entirety,  and sanction platforms which allow the promotion of scam crypto projects. This is my take

I agree with your views but hypothetically speaking if those issues and concerns you mentioned were already factored in, how would any government implement a strategy on making crypto adoption by masses?