Author: Melvin Carvalho 2013-09-27 23:41:45
Published on: 2013-09-27T23:41:45+00:00
Bitcoin's ability to transfer value across borders in real-time is widely appreciated, but the regulatory environment in many geographic regions remains uncertain. This has raised questions about whether capital gains and sales taxes should be paid, among other things. Although this isn't a major issue for bitcoin at present, it may become so in the future. In order to pre-empt any legislative action, one idea is to make voluntary donations to the government (i.e., taxation) for bitcoin service providers.The problem with voluntary donations, however, is that most people are dissatisfied with how their tax money is spent. According to a recent survey in the UK, only 18% of people believe that tax money is wisely spent. This is bad for both government and citizens, and it erodes trust between them. One potential solution is to use smart contracts to ensure that voluntary donations are spent in ways that align with the donor's preferences. For example, if a business owner wishes to donate 10% of their profits to society, they could set up a smart contract that is only "cashable" if the money goes to the right place (verified by an oracle). If successful, this approach could provide revenue for essential services in a more democratic way that gives people greater freedom of choice. Overall, the hope is that smart contracts can help achieve a better democracy that benefits everyone: citizens, government, and innovation alike.
Updated on: 2023-06-07T17:04:26.545642+00:00