Tech Revolution: Unravelling the Impact of Cryptocurrencies, NFTs, and Metaverse on Taxation and Public Finance

Abstract

The effects of today's popular technology concepts in different disciplines are extensively discussed and examined in the literature. In terms of economics and administrative sciences, the effects of related technologies are evaluated and a roadmap is tried to be revealed for the policies and procedures to be put forward in the future. In other words, technology and the rapid development of technology force the social and human fields to change and adapt. Since technology develops for people with people, it should keep up with this change in human life and social areas. Technologies leading the development in the recent period are Internet of Things, Industry 4.0, 5G and emerging future mobile communication technologies, artificial intelligence, augmented reality, virtual reality, blockchain technologies and its applications, cloud computing, cyber security/cryptology and electric vehicles etc. Many of these technologies have been extensively studied in the literature and still continue to be studied. Recently, the concepts of cryptocurrencies, Non-fungible token (NFT) and Metaverse have come to the fore. While searching for the answer of these concepts whether they will be a popular bubble or permanent technologies that will actively exist in the future life, on the other hand these technologies have also reached a serious use and demand level. While the Metaverse has the infrastructure and technological constraints to reach its anticipated usage and potential, cryptocurrencies and NFT have settled into life in today's world. While it is obvious that these technologies have and will affect every field, it can be predicted that they have led the public sphere and public finances to a radical change and transformation. Considering all these important developments, in this study, first of all, technical information about cryptocurrencies, NFT and Metaverse, and information on what these technologies are and their effects on human life will be shared. Later, various evaluations will be made about what kind of transformations and changes the mentioned technologies can cause in imminent taxation in the near future or how public finance should deal with it. The aim of the study is to present a vision for the measures that the taxing system should take against these rapidly developing or widespread technologies and the studies that should be done in order to adapt to these systems.