Italy Considers a Tax on Citizens’ Savings as Top Bitcoin Analyst Implies It Could Be Best Thing Ever
- Italy's government has recently proposed a change to its taxation system.
- The nation's citizens might begin investing in cryptoassets, in order to avoid paying taxes.
Drawing Comparisons Between Traditional Finance and the Digital Asset Industry
Because cryptocurrency, in certain ways, is being integrated into the traditional financial markets, there are times when parallels are drawn between the cryptocurrency industry and mainstream financial institutions which also highlights reasons why people are drawn to cryptocurrency in the first place and there are issues that have gone unresolved in the traditional financial institutions.
One of these issues is that cryptocurrency, in many ways, has acted as a store of value that many people would rather keep their funds in order to avoid inflation in places such as Venezuela or simply to keep it out of the hands of government people feel are excessive. One of the most recent examples of this was the Deputy Prime Minister of Italy who was proposed a tax that will be put on fiat currency and assets that are held by citizens in banks.
Naturally, the suggestion has drawn criticism as most individuals do not want to have their savings taxed and it has also brought up the conversation of whether or not people will need more towards bitcoin and other cryptocurrencies to keep their savings away from governments who wish to tax them. This new suggestion has come on the heels of rising geopolitical tensions that are making an impact on the investment market and as a result, people are becoming more attuned to the idea of keeping their wealth in cash and other valuables.
Show Me the Money
According to official reports, Italy's government is considering taxing citizens savings and the contents of safety deposit boxes and by was due to a statement was made by deputy prime minister Matteo Salvini during a late-night TV program. Salvini stated that billions of Euros were being held as cash and other assets in safety deposit boxes. The way he described the funds in question as hidden money implies that the government has the right to know how much has been saved by the Italian people.
This was further compounded what he stated that those who are forthcoming about their savings will be taxed at a lower rate than those who try to hide them. However, should this go into law, a lot of Citizens will be tempted to move their funds into assets such as cryptocurrency so as to prevent the government from getting their hands anthem
“This is bullish for bitcoin 🚀
Italy could end up being the best thing to ever happen to bitcoin.
H/t @Ray94609549,” one Twitter user said.
The post that was responded to shows that Italian retail deposits have hit an all-time high and the share prices of the eurozone's largest companies have seen peak volatility and the such, citizens and not feeling safe with keeping their wealth within such assets anymore especially in light of the upcoming Brexit as well as potential trade war between the US and China. If they are forced to worry about the government coming after their savings, they will likely want to turn to other alternatives.
At the same time, the cryptocurrency market is known to be rather volatile at any opportunity and citizens may also not want to keep their life savings in a market that is known to go up and down at every time.