Payoneer chief executive officer Scott Galit has dismissed the idea of a single global currency like bitcoin as unrealistic. Galit argued that he doesn’t believe countries like the U.S. will ever allow citizens to pay taxes in bitcoin because of too much volatility in the price of the cryptocurrency.
U.S. Will Never Allow Tax to Be Paid in Bitcoin, Says Galit
As a single global currency, bitcoin is viewed as key to ending willful currency manipulation, eliminating transaction fees and improving transparency in global pricing, among other uses.
“Despite the interests of lots of people out there in the Internet world who love the idea of frictionless commerce and frictionless money and avoiding fiat currencies, I don’t see it,” Galit was quoted by television network CNBC as saying. He was responding to questions on whether the idea of a future single global currency was feasible.
Galit said the bitcoin price volatility means that government money would be subject to the digital asset’s exchange rate fluctuations – so unstable if that were to occurr to fiat money, government would be at risk of defaulting on its financial obligations. For that reason, he argues, a government like the U.S. will draw no tangible benefit from adopting bitcoin in its operations, much less as a tax settlement currency.
BTC has lost more than 80 percent of its value since its December 2017 all-time-high of almost $20,000, in a downturn that has shaken the cryptocurrency industry down to its core.
“Now you could have a debate whether taxes are fair or unfair or whatever but they are a reality,” said Galit,