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Mini-BOTs: Italy’s idea to overcome debt might be proved more complex than it seems
The Italian government is considering of paying their tax cuts and aggressive spending by issuing mini-Bots. These would be small (euro) denomination, non-interest-bearing Treasury bills in the form of bearer securities that would be secured by tax revenues.
Consumers would use mini-BOTs as a tax payment, provided they move beyond policy ideas into reality. Businesses or consumers could pay other businesses via transfers from account to account or hand to hand would not be subject of the EUR3,000 ($3,372) legal limit on cash payments within Italy, and last from the government to pay domestic debt. Thus, mini-BoTs may become an alternative currency which will be mainly used by Italians and the Italian government for domestic limited transactions.
Mini-BoTs would not be tradable like euros. Italian consumers would need a certain amount of them in order to pay taxes. The amount of mini-BoTs consumers require under the policy would be correlated with the quantity of taxes they must pay back, meaning anyone using mini-BoTs will have to buy as many as the amount of taxation they have to pay.
If the Italian government establishes a trade of mini-BoTs, consumers and business will potentially be able to pay debts and raise money for its long-term targets; however, what the government is not taking into consideration is the outcomes of that well established trade.
For further reading please visit: Banks in Italy, Global Investment Banking & Brokerage, Global Investment Banking & Brokerage Industry Profile & Value Chain Analysis