According to Peter Van Valkenburgh, research director at the Coin Center, Bitcoin may not spell the end of traditional currency and banking.
“I think there are people in the Bitcoin community who are probably making too much noise about how Bitcoin is going to dominate all economic systems. And, that no one will use more dollars or banks. I think that’s actually a bit unwise, “Van Valkenburgh said in an interview Friday with the Washington Journal on C-Span.
During the interview he highlighted that the way Bitcoin is used may depend on the geographical location of the users. In some countries, Bitcoin (BTC) is considered more of a speculative asset, used for trading and investing.
Generally speaking, here in America, you will probably still use credit cards and Venmo and things like that. But maybe you want to buy some Bitcoin because it can be a way to balance your investment portfolio against the threat of inflation, ”said Van Valkenburgh, later referring to the similarity to gold in terms of limited supply.
Crypto Firms Fail To Comply With Anti-Money Laundering Standards, Says UK Minister
Cryptocurrency companies in the UK have been struggling to comply with the anti-money laundering standards set by the Financial Conduct Authority. According to a senior official.
John Glen, UK Member of Parliament and Economic Secretary to the Treasury, pointed to major difficulties in the process of registering cryptocurrency companies under the FCA’s AML regulations in official remarks on Friday.
According to the official, only five cryptocurrency companies have received FCA registration as of May 24. After the authority became the official AML supervisor of the cryptocurrency industry in the UK in January 2020.
“Of the companies evaluated to date, more than 90% have withdrawn their application after the intervention of the FCA. There are 167 crypto businesses with outstanding applications, ”Glen noted. He added that 77 crypto startups have applications pending full evaluation.
Australian tax office urged citizens to report their earnings or there will be consequences
The Australian Tax Office has urged citizens to accurately report any profit made in the process of trading cryptocurrencies such as Bitcoin. Anticipating the tax returns of a group of 600,000 Australians who now assume they have invested in digital assets.
ATO Assistant Commissioner Tim Loh said that people still make the mistake of treating cryptocurrencies as a currency rather than an asset. The ATO wants to rid citizens of the myth that cryptocurrency earnings are tax-free. Or that they only need to be declared when they are switched to fiat money.
Loh said the tax office already knew who invests in cryptocurrencies. Thanks to the cooperation it has received from exchanges and banking institutions.
“We track the money back to the taxpayer and we do it through the ATO which has data matching profiles with cryptocurrency exchanges. They give us that information and we use that information to compare it to people’s tax returns, ”Loh said.
President Joe Biden’s 2022 budget proposal includes several new crypto reporting requirements, according to a pair of documents released Friday. The first proposal, mentioned in the White House budget, would expand the broker’s reporting of information regarding the cryptocurrency assets. An integration with Google BigQuery allows developers to analyze on-chain data in Polygon in a simpler way, according to an announcement emailed on Friday. With BigQuery support, Polygon data sets are now included on Google Cloud Marketplace in the Public Financial Services category. Potential benefits of integration are said to include monitoring of gas rates and smart contracts, and determining the most popular tokens or applications on the network.
What do you think Bitcoin cannot replace traditional banking? Let us know in the comment box.