Stablecoins

Bitpay Enables Bitcoin Cash Payments at 100,000 Point-of-Sale Devices

13/02/2020 by Idelto Editor

Bitpay Partnership With Poynt Enables Crypto Payments at 100,000 Point-of-Sale Devices

On February 11, the Atlanta-based payment processor Bitpay announced the firm’s recent partnership with the company Poynt. Now retailers will be able to support cryptocurrency payments using point-of-sale devices and crypto users will be able to pay with digital currencies at more than 100,000 Poynt retailers worldwide.

Also Read: Ethereum vs Tron: Comparing Data, Defi and Stablecoins from Both Chains After Viral Tweet

Crypto Payments Available at 100,000 Poynt Retailers

Bitpay has revealed the company is collaborating with the open commerce platform Poynt in order to bolster crypto payments worldwide. On Tuesday, Bitpay announced the integration of Bitpay’s cryptocurrency payments service with Poynt’s Smart Terminal point-of-sale (PoS) devices. “With just the scan of a QR code at checkout, consumers can now pay merchants using Poynt’s devices with the currency of their choice, including bitcoin, bitcoin cash, ethereum, and three dollar-pegged stablecoins,” the firm disclosed. Bitpay already processes over a billion dollars in crypto payments every year and the firm’s CEO and cofounder Stephen Pair is excited about expanding with the new partnership.

“We’re thrilled to team up with Poynt, who’s proven to be a real driver of point of sale innovation,” Pair noted during the announcement. “It’s a massive growth opportunity for Bitpay and an important milestone in our now nine-year mission to make payments faster, more secure and less expensive for people and businesses.”

The Poynt point-of-sale (PoS) smart terminal.

Poynt Believes Crypto Will Help Expand the Firm’s Growth

Poynt is known for building it’s Smart Terminal PoS device that works with an app and can “easily email receipts, refund transactions, and settle with the tap of a button.” Devices have a hybrid MSR/chip reader and the machine supports major NFC/contactless schemes. It also has a front and back camera like a smartphone and connects to WiFi, with optional features like LTE/3G cellular modem support as well. Poynt PoS devices further support audio and they come with a stereo speaker and built-in microphone. The firm thinks expanding payment options to include digital currencies is simply a natural progression.

“Poynt was built on the idea of open commerce,” the company’s founder and CEO Osama Bedier said. “Poynt OS lays the foundation for developers and merchants to collaborate and drive limitless growth. The addition of open-source, decentralized currencies like Bitcoin is a natural fit in our open-commerce environment.”

Bitpay and Poynt’s partnership enables cryptocurrency payments at point-of-sale at 100,000 locations worldwide.

According to Bedier, Poynt recently touched a milestone of nine billion dollars in gross payment volume in a twelve-month period. The open commerce firm believes expanding to crypto payments will keep that trend going forward.

What do you think about Bitpay partnering with Poynt’s open commerce infrastructure? Let us know what you think about this subject in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Image credits: Shutterstock, Poynt, Bitpay, Fair Use, Wiki Commons, and Pixabay.

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Ethereum vs Tron: Comparing Data, Defi and Stablecoins from Both Chains After Viral Tweet

10/02/2020 by Idelto Editor

Ethereum vs Tron: Comparing Data from Both Networks After Viral Tweet

On February 7, Cold Card and Opendime creator, Rodolfo Novak (also known as NVK), tweeted a picture of himself with Tron founder Justin Sun and Blockstream’s CEO Adam Back. Novak said “Ethereum was over” and the three had a plan to move Tron to Liquid, a network that leverages the BTC chain. Whether the tweet was a joke or not, the picture got the crypto community fired up and it initiated heated debates about the legitimacy of both Tron and Ethereum.

Also Read: IOTA, EOS, XLM, ADA – 4 ‘Bitcoin Contenders’ With Zero Use Cases and Barely Any Infrastructure

ETH and TRX Community Debate After Viral Tweet

One could consider the crypto networks Tron (TRX) and Ethereum (ETH) competitors within the cryptoconomy. While the ETH network is older than TRX, they both have similar goals and do similar things. As Ethereum strives to be a “world computer,” Tron aims to accomplish this feat as well, but with more of a focus on entertainment. They both leverage concepts like decentralized finance (defi), decentralized apps (dapps) and permissionless systems for token creation (ERC20 & TRC20).

When Novak tweeted about moving TRX to the Liquid network, lots of people considered it a joke, while others took the tweet very seriously. Despite what people think about Tron or Ethereum, news.Bitcoin.com decided to look at the two networks to see how they both compare as far as onchain data, market statistics, development, funds locked in defi, and both project’s social media ratings. We want to let our readers decide which project is better by weighing the pros and cons of each crypto without all the opinions.

We have a plan. #Ethereum is over. Tron moving to #liquidnetwork on #bitcoin. Cc @udiWertheimer pic.twitter.com/XEuw11PQKX

— NVK (@nvk) February 8, 2020

Tron vs. Ethereum: Stacking Up the Data

On February 7, 2020, Coin Metrics data shows the BTC chain processed roughly 333,000 onchain transactions. ETH saw a total of 626,000 transactions in the 24 hour period while TRX did around 816,000 on Friday. While ETH has been consistently above BTC transactions per day, TRX has also been consistently above ETH’s daily average.

Both Ethereum and Tron have tokens that represent the stablecoin tether (USDT), but the ETH chain has a whole lot more. Statistics from Tronscan on Saturday show that there’s 814 million USDT held on the Tron network. Today’s data stemming from Etherscan indicates there’s a whopping 2.2 billion USDT leveraging the ETH chain.

As far as stablecoin usage is concerned, Ethereum outpaces Tron by a long shot, as the chain also has other stablecoin tokens like PAX, USDC, and TUSD. But it’s true that both networks have seen more tethers migrate to each blockchain during certain periods of 2019. In fact, as far as funds locked into defi, Ethereum takes the cake when it comes to decentralized finance and centralized finance (cefi) applications as well, with projects like Maker, Compound, and Instadapp. Defi applications on ETH touched a milestone on February 6, when the total value locked (TVL) surpassed $1 billion.

Where market action and fiat value are the focus, tron (TRX) is trading for $0.02 per coin and the cryptocurrency is still down 92% from its all-time high (ATH) of $0.30. Ethereum (ETH) is swapping for $224 per coin at the time of publication, which is 84% down from its ATH of $1,431. Against USD over the last 12 months, TRX is down 18% and against BTC the crypto is down 69%. With ETH the crypto has gained 86% against the U.S. dollar in a year but against BTC it is still down 30%.

Trade volume data from Messari shows the reported volume for TRX is around $203 million in the last 24 hours, but Messari’s “real volume” index indicates there’s only been $49 million in TRX trades. As far as ETH is concerned, reported trade volume on Saturday is roughly $3.5 billion, but again Messari’s “real volume” index shows less at $349 million. Tallying up the aforementioned statistics shows that ETH was a better investment over the last year, it has more liquidity, and trade volume as well.

As far as yearly Github activity, coincheckup.com data shows that Tron has outpaced ETH development during the last 12 months in regard to tallied commits. The Coindesk social media benchmark shows ETH has around 451,000 Reddit subscribers and the same number of Twitter followers giving the project a 23% social rating.

Tron’s Reddit community has about 71,000 subscribers and Tron has around 497,000 Twitter followers giving the project a 9.7% social rating. ETH has around 2,000 Github watchers and roughly 445 developers contributing to the ETH codebase. Tron has about 309 Github watchers and 118 developers that have contributed to the TRX Github repository. While there are 9,200 forks of Ethereum, there are only 673 Tron forks.

The Ethereum project got a head start and Tron is not as old of a blockchain in comparison. They both have influential leaders at the helm with Justin Sun and Vitalik Buterin who are both still around to weigh in with opinions, unlike Satoshi. Both projects have a lot of investors who believe that either ETH or TRX will be dominant and there are definitely those that think both will serve a purpose. Either way, both exist in prominent market positions today as ETH and TRX are in the top 15 largest market capitalization list and might be for quite some time.

What do you think about these two cryptocurrencies? Do you think Tron is better than Ethereum or vice versa? Let us know what you think about this subject in the comments section below.

Disclaimer: Price articles and market updates are intended for informational purposes only and should not be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.” Cryptocurrency prices referenced in this article were recorded on February 8, 2020.

Image credits: Shutterstock, Coin Metrics, Markets.Bitcoin.com, coincheckup.com, Coindesk’s social media benchmark, defipulse.com, Etherscan, Tronscan, Fair Use, and Pixabay.

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The post Ethereum vs Tron: Comparing Data, Defi and Stablecoins from Both Chains After Viral Tweet appeared first on Bitcoin News.

Op Ed: U.S. Cryptocurrency Regulation Faces Uncertainty in 2020

18/12/2019 by Idelto Editor

The future of cryptocurrency regulation in the United States remains uncertain. The lack of a clear regulatory framework makes it difficult for market participants to act without fear of reprisal. The guidance issued and actions taken by the U.S. Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and Congress in 2019 provide a road map for how cryptocurrency regulation will develop in 2020. Here are five of the most significant regulatory milestones that we’ve seen this past year.

1. The SEC Released Guidance to Token Issuers

In April 2019, the SEC released guidance to token issuers explaining the factors that make a digital asset a security. Under the SEC’s guidance, a digital asset is likely to be a security if (1) it gives the holder the right to share in the enterprise’s income or profits or to realize gain through capital appreciation; (2) it is transferable through a secondary market; or (3) it will appreciate based on the efforts of a centralized organization.

SEC Chairman Jay Clayton has consistently stated that bitcoin is not a security. Other digital assets, however, have not been so designated.

In an October 2019 complaint, fore example, the SEC halted Telegram’s initial coin offering. The complaint alleged that Telegram’s planned token, Gram, was a security because “investors expect to profit from Telegram’s work: the development of a TON ‘ecosystem,’ integration with [Telegram Messenger], and implementation of the new TON Blockchain.” Telegram has refuted the SEC’s allegations and the matter is pending in federal court in the Southern District of New York.

2. The SEC Denied the Latest Attempt for a Bitcoin ETF

In October 2019, the SEC Division of Trading and Markets rejected an application for a bitcoin ETF filed by Bitwise Asset Management and NYSE Arca — the exchange upon which the bitcoin ETF would be listed. The SEC’s denial rested upon its uncertainty in the integrity of the bitcoin market and the lack of regulation over the major cryptocurrency exchanges.

The SEC found that bitcoin was not “uniquely resistant to manipulation” because a large segment of the market consisted of fake and noneconomic activity. The SEC further found that NYSE Arca’s surveillance-sharing agreement with the Chicago Mercantile Exchange futures market was not sufficient because of the lack of an interrelationship between the proposed bitcoin ETF and the bitcoin futures market. On November 18, 2019, the SEC announced that it would review the October denial by the Division of Trading and Markets.

3. CFTC Chairman Touted a Principles-Based Approach to Cryptocurrency Regulation

In November 2019, CFTC Chairman Dr. Heath P. Tarbert touted a “principles-based approach” to lawmaking around cryptocurrencies. Tarbert explained that principles-based regulation fosters efficiency and flexibility in the development of new products while mitigating risk to consumers. It is a more adaptable form of lawmaking and supervision which allows market participants to determine the method used to reach a desired regulatory outcome. It remains to be seen how Tarbert’s ideas will influence crypto regulation in 2020.

4. Congress Introduced a Bill Focused on Stablecoins

On November 21, 2019, Congress introduced a bill that classified certain stablecoins as securities under the Securities Act of 1933. Stablecoins have received increased focus since Facebook’s June 2019 announcement that it was creating its own cryptocurrency, Libra, that was backed by a basket of currencies and U.S. treasuries. Regulators and politicians expressed concerns about privacy, money laundering, and national security. While the bill is far from becoming law, congressional action will likely influence regulators and the cryptocurrency market in 2020.

5. The SEC Approved a Closed-End Fund Based on Bitcoin Futures

In December 2019, the SEC approved an application from New York Digital Investment Group to offer institutional investors a closed-end fund based on bitcoin futures. Dalia Blass, the Director of the Division of Investment Management at the SEC, explained the reasons for approving the fund: (1) It does not hold digital assets directly; (2) it has prominent risk disclosures; and (3) it does not have daily redemptions, which tempers the risk of unexpected liquidity demands. The approval signals that the SEC is open-minded about approving innovative and new crypto-based products.

Federal regulators and Congress showed an increased focus on cryptocurrencies in 2019. As we move into 2020, expect discussions to escalate as more pressure is put on the SEC, CFTC and Congress to come up with a federal regulatory scheme that fosters innovation while mitigating risk to consumers.

The looming 2020 presidential election also promises to influence cryptocurrency regulation. Current democratic hopeful Elizabeth Warren has expressed concerns that crypto consumers could be harmed by initial coin offerings (ICOs) and stated that cryptocurrency is “easy to steal.” While the other leading democratic candidates have been silent on the issue, the election outcome will surely have an impact on the future of cryptocurrency regulation.

This is an op ed contribution by Andrew Mount. Opinions expressed are his own and do not necessarily reflect those of Bitcoin Magazine or BTC Inc.

The post Op Ed: U.S. Cryptocurrency Regulation Faces Uncertainty in 2020 appeared first on Bitcoin Magazine.

Regulatory Roundup: Crypto ‘Inevitable’ in India, China Rankings, NY Streamlines Policy

16/12/2019 by Idelto Editor

In this regulatory roundup, we cover a positive crypto story in India, China’s year-end rankings, and the European Central Bank entering the stablecoin race. We also cover the New York regulator’s proposed Bitlicense revision — the first in five years — and several other notable regulatory developments in the crypto space.

Also read: Regulatory Roundup – Bitcoin Futures Fund Approved, India’s RBI-Backed Digital Currency

Crypto Is ‘Inevitable’ in India

As the Indian government is deliberating on the country’s crypto policy, a prominent member of India’s parliament, Dr. Subramanian Swamy, said that “cryptocurrency is inevitable.” His remark followed the statements made by the governor of the Reserve Bank of India (RBI) last week regarding cryptocurrencies and digital rupees. Dr. Swamy further said: “I advocate that India as an established super power in software should accept to make the transition to cryptocurrency.” He will chair a conference that will take place at UN India’s headquarters on Dec. 18 where cryptocurrency will be discussed.

NY Proposes New Rules, IRS Still Undecided

In the U.S., the New York State Department of Financial Services (DFS) has proposed new Bitlicense rules to streamline the requirements for licensees seeking to list new coins. This is the first review of the regulation in five years. The DFS proposes creating a pre-approved list of coins for all licensees to list without having to obtain approval. The coins being considered for the pre-approved list are BTC, BCH, ETH, ETC, LTC, XRP, PAX, and GUSD.

Licensees can also obtain approval for their firm-specific listing policy. Once this policy is approved, the licensee will be able to self-certify the coins they want to list in the future without having to obtain prior approval; they only need to notify the DFS of the intention to list those coins. The regulator added:

All VC [virtual currency] licensees are required to keep DFS informed, no later than at the time of their next quarterly filing, of all coins to be used or offered in connection with their virtual currency business activities.

As for how crypto transactions are taxed in the U.S., the Internal Revenue Service (IRS) has not made up its mind regarding the tax treatment of promotional airdrops, one of several unclear areas from its new tax guidance issued in October. The IRS, however, has started using the new Schedule 1 tax form requiring all tax filers in the country to disclose crypto activities.

ECB Entering Stablecoin Race

The new president of the European Central Bank (ECB), Christine Lagarde, held her first press conference as head of the ECB last week. The former International Monetary Fund (IMF) chief said “there is clearly a demand” for stablecoins and proceeded to outline her plans to lead the ECB “ahead of the curve.” She believes that her plans will be realized by mid-2020.

However, Lagarde said she only knows of one stablecoin at the moment, without specifying which one. A recent EBC report, however, discusses a number of stablecoins including Facebook’s libra, tether, and nubits.

China’s Digital Yuan and Crypto Project Rankings

Chinese news outlet Caijing reported on Dec. 9 that China’s central bank, the People’s Bank of China (PBOC), is preparing to test its digital currency in two cities: Shenzhen and Suzhou. There has been much speculation about when China will release its digital yuan, but the PBOC has not given a timeframe for the launch, noting that more tests and research need to be conducted.

Meanwhile, China’s Center for Information and Industry Development (CCID), under the country’s Ministry of Industry and Information Technology, has released the 15th update of its crypto project rankings — the last one this year. 35 crypto projects were evaluated and ranked for the center’s Global Public Blockchain Technology Assessment Index. EOS still tops the overall ranking, followed by Ethereum and Tron. Bitcoin and Bitcoin Cash have climbed up from the previous rankings.

Denmark’s 20,000 Tax Letters, Sweden’s Approval

Denmark’s tax authority, Danish Skattestyrelsen, has sent out warning letters to about 20,000 cryptocurrency owners, asking for a full breakdown of their transactions and for them to file amended returns if needed. The tax agency obtained information on these traders and all their purchases and sales made between Jan. 1, 2016, and Dec. 31, 2018, from three local crypto exchanges.

Over in Sweden, the Swedish Financial Supervisory Authority has approved the base prospectus filed by Amun AG for an exchange-traded product. Sweden was also in the news last week for its plan to create a central bank digital currency pilot platform. The country’s central bank, the Riksbank, explained that “The primary objective of the e-krona pilot project is to broaden the bank’s understanding of the technological possibilities for the e-krona.”

What do you think of the regulatory developments in this roundup? Let us know in the comments section below.

Images courtesy of Shutterstock.

The post Regulatory Roundup: Crypto ‘Inevitable’ in India, China Rankings, NY Streamlines Policy appeared first on Bitcoin News.

Lagarde Sees Demand for Stablecoins, Plans to Put ECB ‘Ahead of the Curve’

13/12/2019 by Idelto Editor

At her first press conference as head of the European Central Bank (ECB), Christine Lagarde outlined her plans to lead the ECB “ahead of the curve” in the field of digital currency. “There is clearly a demand out there that we have to respond to,” she said, referring to stablecoins.

Also read: Regulatory Roundup – Bitcoin Futures Fund Approved, India’s RBI-Backed Digital Currency

Lagarde’s Plans to Put ECB ‘Ahead of the Curve’

New European Central Bank (ECB) President Christine Lagarde talked about her digital currency plans while explaining other monetary policy decisions at her first news conference as head of the ECB on Thursday. The press conference followed a meeting of policymakers in Frankfurt where the topic of central bank digital currencies was reportedly discussed. In answering questions regarding the Eurosystem’s digital currency, Lagarde said:

My personal conviction is that given the developments we are seeing, not so much in the bitcoin segment, but in the stablecoins projects … we had better be ahead of the curve if that happens. Because there is clearly a demand out there that we have to respond to.

Regarding stablecoins, she also noted: “we only know of one at the moment but there are others being explored and underway.” While the new ECB chief did not name the stablecoin she was referring to, an ECB Occasional Paper Series report published in August entitled “In search for stability in cryptoassets: are stablecoins the solution?” discusses a number of stablecoins including Facebook’s libra, tether, and nubits.

Lagarde also revealed that the ECB has set up a digital currency task force and will accelerate its digital coin efforts, drawing on research by the eurozone’s central banks that have spent resources on studying central bank digital currencies (CBDCs). She proceeded to outline her plans.

“We will identify number one the purpose that we have with that,” the former International Monetary Fund (IMF) chief explained. “Are we trying to reduce cost? Are we trying to cut out the middleman? Are we trying to have inclusive finance at no cost? There’s a whole range of objectives that can be pursued. So I think we will start by doing that.” Next, she elaborated, “we will identify the technicalities of it all, which is not a given, particularly when you talk about the Euro system.” The new ECB president concluded:

I think we’re trying to do that by mid-2020.

ECB’s Own Digital Currency

The ECB has also reportedly been looking into the prospect of issuing its own digital currency that would give the holders direct claims on the central bank. Several countries have similarly increased their efforts in this area following the announcement of the Libra project in June by Facebook, which was met with resistance from many regulators. The European Council and the European Commission jointly issued a statement last week stating that “no global ‘stablecoin’ arrangement should begin operation in the European Union until the legal, regulatory and oversight challenges and risks have been adequately identified and addressed.” Furthermore, the ECB indicated last week that it will develop its own digital currency if the private sector cannot make cross-border payments faster and cheaper.

At the aforementioned press conference, Lagarde also talked about the Eurosystem’s existing digital payment frameworks: TIPS (TARGET Instant Payment Settlement) and PEPSI (The Pan European Payment System Initiative). “We have several items that are completely digitalized that are not at the front end, and that the bank’s clients do not perceive as being in operation,” she asserted. “They deliver in digital terms the operations of clearing and settling, sometimes in one single operation,” she added, emphasizing that through these systems, “settlement and clearing are actually taking place instantly.” Noting that some countries are not using the systems, she affirmed that she “will continue to push” for their usage.

Progress on Central Bank Digital Currencies

Several countries worldwide have been studying the prospect of introducing their own central bank digital currency, as news.Bitcoin.com previously reported. China, for example, has said several times that it is working on a digital yuan. While the People’s Bank of China (PBOC) said that there is no timetable for issuing one, there are reports that the Chinese government is preparing to test its digital currency.

“I think there is also great interest outside our regional area. I know for instance that Canada, the U.K., other countries way beyond are certainly looking deeply into that to see if it makes sense, what purpose it serves and how we can best deliver on it,” Lagarde said at the Thursday press conference. Bank of England Governor Mark Carney has suggested that a global central bank digital currency might replace the dollar as the international reserve currency one day. Last week, the British Virgin Islands reportedly unveiled some details of its digital currency to be pegged 1:1 against the U.S. dollar for use within the territory.

However, some countries do not see the benefits of issuing their own central bank digital currencies just yet. In the U.S., Federal Reserve Chairman Jerome Powell and Secretary of the Treasury Steven Mnuchin said that they do not see a need to create a digital dollar, at least for the next five years. Nonetheless, the Federal Reserve is studying the costs and benefits of issuing one. The Bank of Japan has recently released a study on the legal impact of such currency but concluded that the bank is not looking to issue one currently. South Korea is another country that is taking a wait-and-see approach.

Do you think Lagarde will be able to lead the ECB ahead of the curve in the crypto space? Let us know in the comments section below.

Images courtesy of Shutterstock and Reuters.

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