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Category: #Cryptocurrency (Page 1 of 4)

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Crypto lobbyists face defeat with House set to block tax rule changes

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House Democrats on Tuesday were poised to block attempts to scale back digital currency tax rules tucked into President Joe Biden’s infrastructure plan, in a new setback for crypto industry advocates fighting the proposal.

The House Rules Committee, which drafts the terms of debate for bills headed to the floor, agreed to a process that would prohibit any amendments from being considered for the infrastructure bill. The full House was scheduled to vote to lock in the procedure Tuesday afternoon. The plan would also set up a floor vote on the infrastructure package by Sept. 27.

The House was set to close the door to infrastructure bill changes despite calls from Democrats and Republicans to pare back the cryptocurrency tax proposal that the Senate passed as part of the legislation earlier this month.

At issue in the fight are proposed requirements that would force cryptocurrency exchanges and other firms to report transaction information to the Internal Revenue Service, similar to rules in place for stock brokers. As drafted, industry lobbyists and sympathetic lawmakers say the plan threatens technological innovation and the viability of a growing sector of the U.S. economy.

Crypto industry groups are now considering other legislative vehicles to revise the policy, after being blindsided by its inclusion in the infrastructure bill. One possibility is Democrats’ $3.5 trillion budget package, said Michelle Bond, CEO of the Association for Digital Asset Markets.

“The industry’s biggest test will lie in efforts to forge positive relationships in Washington,” Bond said.

Source: https://www.politico.com/news/2021/08/24/crypto-lobbyists-house-tax-rule-infrastructure-506756
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The Article Was Written/Published By: Kellie Mejdrich

How Anonymous Is Bitcoin?

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Cryptocurrency, and Bitcoin especially, has a reputation for being a completely anonymous form of payment, free from tracking and interference. However, if you look a little closer, you’ll see that these digital currencies reveal a lot more information about you than you might think.

Read This Article on How-To Geek ›

Source: https://www.howtogeek.com/741484/how-anonymous-is-bitcoin/
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The Article Was Written/Published By: Fergus O’Sullivan

Amazon to Accept Bitcoin by End of 2021 and Develop Own Currency by 2022: Report

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Amazon has plans to accept the cryptocurrency bitcoin by the end of 2021, according to an anonymously sourced report in the London newspaper City A.M. And while this is just the word of one anonymous “insider” at the Seattle-based mega-retailer, bitcoin’s price skyrocketed overnight and it’s creating a lot of buzz in…

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Source: https://gizmodo.com/amazon-to-accept-bitcoin-by-end-of-2021-and-develop-own-1847360405
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The Article Was Written/Published By: Matt Novak

PayPal ups its weekly cryptocurrency buy limit to $100,000

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One way fintechs have set themselves apart from traditional banks is by embracing crypto trading. For some of the biggest names in the sector, the expansion has been a success. Take PayPal. Following in the footsteps of Square’sCash App, the company began allowing US members to buy, hold and sell Bitcoin, Litecoin, Ethereum and Bitcoin cash back in November. It followed that with the option to checkout with crypto in March and brought crypto trading to its subsidiary Venmo the following month. Now, as part of its ongoing push into digital currencies, PayPal is upping the amount of crypto users can buy to $100,000 per week and scrapping the $50,000 annual limit altogether.

The expansion marks a fivefold increase to the service’s crypto purchasing limit in less than a year. PayPal says it’s also adding to its in-app guides and educational materials on cryptocurrency to help dispel myths around virtual currencies. In January, PayPal made an investment in US-based tech startup Taxbit, which helps consumers and businesses calculate the taxes owed on cryptocurrency holdings.

The payments company has made it clear that its crypto push is about driving engagement. Speaking at JP Morgan’s annual tech conference in May, PayPal CFO John Rainey said that people who have purchased crypto use the app twice as much as others. A large part of that is people checking the prices of their holdings. Rainey added that 50 percent of crypto holders use the app daily.

Source: https://www.engadget.com/paypal-cryptocurrency-limit-092042342.html?src=rss
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The Article Was Written/Published By: Saqib Shah

El Salvador to Give Every Citizen $30 in Bitcoin for Downloading Govt Crypto App

El Salvador will give every adult citizen $30 in bitcoin, provided they download and register the government’s cryptocurrency app, known as Chivo, according to President Nayib Bukele.

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Source: https://gizmodo.com/el-salvador-to-give-every-citizen-30-in-bitcoin-for-do-1847171236
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The Article Was Written/Published By: Matt Novak

Bitcoin Plunges as China’s Sichuan Province Pulls Plug on Crypto Mining

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Bitcoin continued its dramatic plunge to $32,281 Monday morning, down 17.65% from a week earlier as some of China’s largest bitcoin mining farms were shut down over the weekend. The bitcoin mining facilities of Sichuan Province received an order on Friday to stop doing business by Sunday, according to Chinese state…

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Source: https://gizmodo.com/bitcoin-plunges-as-chinas-sichuan-province-pulls-plug-o-1847139438
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The Article Was Written/Published By: Matt Novak

Central banks are headed toward digital currencies

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The U.S. is starting a national conversation around a central bank digital currency (CBDC).

Why it matters: Several other countries have already experimented with or released early versions of CBDCs. Such a pivot could aid underbanked populations, and help make banking and monetary policy more efficient.


Driving the news: The Senate Banking Committee held a hearing on CBDC Wednesday, led by Sen. Elizabeth Warren (D-Mass.). 

  • The Federal Reserve is set to release a discussion paper next month on how it’s thinking about a digital dollar.

How it would work: First, a CBDC is a digital version of the dollar, so its value wouldn’t fluctuate versus the dollar… since it is the dollar.

  • Put simply, a CBDC is just a digital version of an existing currency that is issued, governed and backed by a central bank.
  • CBDCs would be recognized as legal money, unlike bitcoin

The pros: It would enable more people to become part of the banking system, reduce the cost to bank and increase the rate of payments innovation.

  • The Federal Reserve could also gain more precision over money supply, and lawmakers could distribute government assistance programs such as social security and food stamps to a wider underserved group of the country. 
  • A U.S. CBDC could also help maintain the global predominance of the dollar.

The cons: Potential drawbacks include the traceability of digital payments. The anonymity of cash offers privacy.

  • Security of financial data on hundreds of millions of people will not come easy. 
  • Financial institutions are also fearful banks could lose a large proportion of their deposit base. 

What they’re saying: “CBDCs are ultimately quite likely for many countries,” Darrell Duffie, of Stanford’s Graduate School of Business, tells Axios. Duffie was a witness at the Senate hearing.

  • “I’m not confident that they are actually necessary — that needs to be judged based on the best CBDC designs that will emerge,” Duffie adds.

State of play: More than 60 central banks have been looking into CBDCs since 2014, according to a PwC report from April.

  • The Bahamas and Mainland China have active trials dubbed, the “Sand Dollar” and the “Digital Yuan,” respectively, that individuals can use as a form of digital cash.
  • The Federal Reserve has been researching digital currencies since at least 2018, but at a less consistent pace compared to other central banks reviewed by PwC. 

Be smart: While there is general agreement about what a CBDC is, countries are faced with hundreds of choices and decisions with respect to how they build their systems — and, in turn, what the long-term implications will be.

  • So far, most observers have assumed that CBDCs will be account-based, rather than being token-based like most existing cryptocurrencies.

What to watch: Lev Menand of Columbia Law School, who also testified, tells Axios he believes the pandemic highlighted the inequities and inefficiencies of current payments system.

  • “It took far too long to distribute critical economic aid in April and May of last year,” says Menand.
  • Some experts also say that criminals may have stolen as much as $400 billion of unemployment benefits, Axios’ chief financial correspondent Felix Salmon reported.

Felix’s thought bubble: “Digital currencies are still in their infancy, despite bitcoin being 10 years old. I wouldn’t expect to see a U.S. CBDC this decade.”

Go deeper on the threat that CBDCs pose to digital stablecoins.

Source: https://www.axios.com/cbdc-us-fed-central-bank-digital-currency-china-yuan-10adb535-adf1-4af5-82f5-68155e0c1ae1.html
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The Article Was Written/Published By: Hope King

NFTs Are Crashing and Who Could Have Seen This Coming Other Than Basically Anyone?

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The crypto world saw a dizzying surge this year of NFTs being used to sell ownership of everything from works of online art to random tweets, though it was never clear just why NFTs were commanding such staggering prices. Bragging rights? Status symbols? Or just pure speculation driven by skyrocketing cryptocurrency…

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Source: https://gizmodo.com/nfts-are-crashing-and-who-could-have-seen-this-coming-o-1847020345
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The Article Was Written/Published By: Tom McKay

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