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The Forum > Article Comments > Why Australia needs a digital currency > Comments

Why Australia needs a digital currency : Comments

By Shann Turnbull, published 13/3/2015

The private issue of negative interest rate paper money was re-introduced into Germany in 2006. It has spread to a number of regions indicating its acceptance.

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No, No , No in so many ways,
I'm sure the gen Y would argue differently,

But , with a cashless society and you allowing the ATO to give you a yearly statement, it would be a HUGE cost to Australia. By ATO current standards of 80% correct, 20% mistakes and 40% of funds are spent collecting the other 60%. This would mean employing thousands of extra public servants and for what?

The black market will always survive. You can deal in drugs with goods and services (and call it pro bono)

What cost would my son or daughter have to bare if I wanted to give them $10 for doing their chores? A ATO run cashless society I would estimate at least $3 of that $10, and for what? To employ another leech on society, another drain on income by employing another public servant, who's only claim in life is being incompetent?

Our Aussie dollar is the fourth most traded currency in the world, that gives us POWER and additional income on the world stage. A cash less society weakens are bargaining power with our trading partners.

I know eventually we will have a cashless society as socialist governments will see the benefit of extra tax revenue and more public servants who will vote for them.

BUT, I hope that day is many years away
Posted by kirby483, Friday, 13 March 2015 10:49:27 AM
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Excellent Idea. In a cashless economy, supported by smart cards, the black economy just couldn't exist!

Moreover, the tax collection methodology could be limited to a simple unavoidable expenditure tax, which simply couldn't be avoided, the object of the black economy.

Nor would it still be possible to hide money/income, courtesy of this or that foreign location; given in order to access this income; it'd need to go through a national account; to get onto your smart card!

And or, there'd be automatic questions raised by the program, if it noted you seemed to be able to travel frequently, without seeming to pay the fare!?

I mean the travel agency or shipping line, what have you, might have a smart card telling a very different story to a mainframe capable of deducing the comparable/cross referenced facts at light speed!

For mine, a simple expenditure tax costing less than the current cost of avoidance/minimization, would take all the reasons for avoidance out of the game; and indeed, all the unproductive parasites who alone, benefit from the current complexity!

Better those number crunching talents be used productively in a brand new franchised poeples' bank; and an excellent place to put all the new surpluses we'd create, just by dint of ending both the black market and its constant companion, endemic tax avoidance!

Besides, we need something better than a conga line of foreign investors,just to put some far more affordable venture capital in Australian hands!?
Rhrosty.
Posted by Rhrosty, Friday, 13 March 2015 11:48:01 AM
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Currently it is possible for a parent to give a kid up to %10,000.00 a year GIFT, without that creating a tax problem for the kid; and you can squirrel even more in a specific use (i.e.,uni ed) family trust.

So the idea that a smart card would somehow disadvantage the kid, pure unadulterated humbug!

I mean, the kid could give you a multiple choice shopping list; but only if you're stupid enough to try to bribe them for normal good behavior!

Me I'd take something they value away from them until they understood that they are the (do as you're told) Kids and you are the responsible parent.

I could take my Kids anywhere and receive endless comments on how well behaved they were; and such a nice treat as opposed to the often out of control kids, acting up in order to get that bribe or sugar hit?

And yes, the end of too clever by half tax avoidance would likely see much more money in government coffers, and without having to lay out a single cent to put it there!

Meaning, as well as the avoided tax, they'd get to keep and use the 40% some say is the current cost to the government of current collection policy!

And lets not mention the additional 30% extracted by state duplication/unnecessary layer of double dip admin!?

As always, there will be a host of those with something to hide or gain, trying to obfuscate the issue with their usual garbage!?

Which sadly is all too often believed by the ever trusting gullible; and, who are invariably the ones endlessly making good all the avoided tax!
Rhrosty.
Posted by Rhrosty, Friday, 13 March 2015 12:13:22 PM
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Terrible idea, based mainly on economic ignorance! A surplus would be extremely bad for the economy at the moment what we need is a stimulus. A bigger government deficit would benefit many people much more than "cost carrying money", firstly because the government can spend the money on things that benefit the people, secondly because people would resent that intrusive tax, and thirdly because people would dodge it by trading in foreign currencies instead, slashing our dollar's value. And free trade is a good thing we should be trying to abolish the GST, not broaden it.

The government issues the money and has various ways to influence its value, but has rightly left ultimate control of the value to the market. Having a centrally planned currency value would be terrible, as the government would have to then go against the nation's economic interest in order to maintain that value.

Your plan would destroy, not increase, sustainable stable prosperity.

BTW your Senate and UK hyperlinks don't work, though the Senator hyperlink appears to lead where the former should go.
Posted by Aidan, Friday, 13 March 2015 12:16:13 PM
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Rhrosty: "Excellent Idea. In a cashless economy, supported by smart cards, the black economy just couldn't exist!"

While I do acknowledge that the black market would be severely reduced in size if we went cashless, you would never get rid of it completely. The reason why is because anything that has value (as perceived by those involved in a trade) can be used as currency.

eg, Did you know that organised crime gangs have been known to use stolen art/antiques/wine as currency for large large payments? (as-an-aside: I've often wonder howthis works, especially with respect to the art because you would never be able to sell it on the open market-- so how do you agree what it is worth?). Beside this extreme example, more realistically they can also use foreign currency, companies shares (where the registered owner of the shares is a front), gold, etc.

For the case where it is not large sums and you need a frictionless, untraceable standand item to use as currency (eg: in the case of street dealing drugs), you can use pre-paid phone credit, gift cards, cartons of beer (or a single beer), cigarettes etc.

Additionally, you can just use plain of barter where there is no currency involved--- eg. you ignore the other candidates for this cushy government job and I'll have sex with you.

It is impossible to stop the black market outright.
Posted by thinkabit, Friday, 13 March 2015 12:25:24 PM
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Thinkabit points out some truths when he states that "anything that has value can be used as currency."
And why not?
I don't want anyone knowing my private business or transactions.
My trading endeavours are strictly a matter between me and the person with whom I'm dealing; untraceability is commensurate with privacy.
In any case, what's "black" about a black market?
Posted by Ponder, Friday, 13 March 2015 12:48:42 PM
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