Innisfil is a quiet lakeshore Canadian township in Ontario state of about 36,000 inhabitants. It is probably the last municipality that you would expect to be forward-thinking.
Yet, the town started an innovative one-year pilot project allowing its residents to pay property taxes using Bitcoin. The move made Innisfil the first municipality in the country that accepts cryptocurrency. Other cryptocurrency options like Ethereum, Litecoin, Bitcoin Cash, and Ripple could be added in the future, according to the news release.
The town partnered with Coinberry, a Toronto based crypto currency company, to process bitcoin payments. Founded in 2017, Coinberry operates the Coinberry cryptocurrency trading platform and the Coinberry Pay cryptocurrency payment processing solution. It is Conberry Pay solution that will be handling transactions of Innisfil tax payers.
“We developed a bit of a reputation for not being afraid to try new things,” Mayor of Innisfil Lynn Dollin told CTV News Channel.
It’s true. Previously, the town created an on-demand transit system in partnership with Uber. And after that success, they started a pilot project with Rover Parking app in an effort to curb illegal parking in the town.
To provide safety to their tax payers, Innisfil doesn’t hold cryptocurrency. When Coinberry receives the crypto funds, it instantly converts the cryptocurrency to Canadian Dollars for later deposit in town’s accounts.
If the value of the cryptocurrency drops before it’s deposited into the town’s account, it is responsibility of the payer to cover the difference; whereas if the value rises, the town will refund any additional money.
Innisfil isn’t the first jurisdiction in the West to accept Bitcoin for taxes. Last year, Ohio state launched Ohiocrypto.com to allow businesses to pay taxes with Bitcoin through BitPay’s payment processor. For another example, in February this year, a bill was introduced in the States that would allow California-based cannabis businesses to pay their taxes in stablecoins.
As of now, it’s unknown if any of the town’s residents have taken advantage of the new system. Nevertheless, it is another step towards ensuring that cryptocurrencies have real-world use cases.
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