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Stellar Blockchain to host EU-Thailand remittance corridor

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Stellar has seen major breakthroughs of late as rivalry with the blockchain firm Ripple continued to escalate. In the latest development, a new cross-border remittance corridor has been opened between the 27 European Union [EU] countries and Thailand on the Stellar blockchain.

According to the official press release, Velo Labs, the company building a global settlement network, has teamed up with TEMPO Payments, the EU anchor for Stellar blockchain payments. The two entities aim to leverage Bitazza which happens to be a Thai crypto trading platform to facilitate the transactions. TEMPO Payments and Bitazza are both licensed financial institutions and have expanded their footing across ASEAN and EU markets, raking in nearly $17 billion and almost 600 million customers.

Stellar blockchain will be hosting the new corridor and leverage Velo tokens and Velo digital credits for the on-chain transactions. All three partner companies aim to perform a faster and cheaper money transfer option between Europe and Thailand by relying on their respective networks and eliminate the inefficiencies in these areas.

Elucidating more on the offering, Mike Kennedy, CEO of Velo Labs stated,

“What we’ve launched today is a validation of our core mission: building a global, decentralized, and interoperable network that will allow businesses and individuals alike to securely and instantly transfer value across the globe. Velo Labs wants to make cross-border transactions faster, cheaper, and more reliable for everyone; this first step starts us down the path of that reality.”

Stellar flying high

The latest news comes after reports of Stellar negotiating to purchase MoneyGram made headlines. The latter happens to be a popular global remittance app formerly partnered with Ripple. The two firms previously enabled large-scale remittances among emigrant communities.

However, things went south when tensions between Ripple and SEC escalated. Several platforms suspended XRP operations. MoneyGram also terminated its partnership agreement with the beleaguered blockchain company. Many in the community viewed Stellar’s reports to buy MoneyGram as an inflammatory move at a critical point in XRP’s timeline.

American Cryptocurrency Tax Defaulters Receive Another Warning Letter

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  1. Internal Revenue Service ( IRS) has sent another stack of letters to alleged cryptocurrency tax defaulters.
  2. The letter warns U.S. crypto holders that they have information that indicates that they may have misreported their income and pay taxes on their cryptocurrency transactions.

According to a Bloomberg report, the U.S. tax agency verified that it had sent warning letters to cryptocurrency users dated 14 August.CoinTracker.io distributed a copy of the IRS warning letters on its website, claiming that they had received it from one of the users. The crypto tax service provider also claimed through the blog post that numerous Reddit users had received the same letter.

Cryptocurrency tax defaulters warned to file taxes correctly

The IRS warning letter requires U.S. residents to file amended returns or delinquent returns “within the notification period ending in August 2020. Furthermore , the agency cautioned cryptocurrency tax defaulters that they already have accurate records of cryptocurrency owners in the U.S and legal action would be taken if the tax defaulters do not meet their tax liabilities by the due date.

As has been the case in the past, the tax authority can send three different types of letters to taxpayers. The category depends on the state of the ratepayer and the extent to which the body opines that the subject intentionally avoids paying taxes.

According to CoinTracker’s head of Tax and Strategy, Shehan Chandrasekera, the initial two letters, letters 6171 and 6174-A, are intended for educational, and they are more lenient. However, in case the taxpayer receives the third one, letter 6173, they should take action immediately because it bears consequences and is more intense. Notably, this letter entails the risk of taxpayer inspection.

U.S. crypto tax laws

Trading crypto assets in the United States are subject to capital gains tax. That implies that at any moment that a U.S. taxpayer buys or sells virtual currencies, they must calculate and report the profits or losses made. Furthermore, those who receive their wages in the crypto form are also required to report this as revenue.

The IRS’s new drive follows a similar campaign where the agency sent warning letters to over 10,000 alleged cryptocurrency tax defaulters back in 2019. Back then, the agency issued the three different letters, requiring taxpayers to respond quickly to the third one.

Nigeria Records Largest Interest In Bitcoin Activity Worldwide Since April

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The largest economy in Africa, Nigeria, is currently topping the charts in recorded Bitcoin activity and interest worldwide since April. The oil-rich western African nation leads in traffic and activity recorded on the site, according to a recent report by crypto wallet Blockchain.com.

Nigeria also registers the highest Bitcoin trading activity in Africa. In addition, the nation is one of the world’s fastest rising cryptocurrency markets.  Nigerians are steadily embracing crypto mainly because it serves as a cheaper alternative of transferring money.

Nigeria saw substantial increase in Bitcoin activity

Blockchain.com reveals that there has been at least 60 percent hike in Bitcoin activity on the site in Nigeria. And since April, they have also recorded a significant influx of Bitcoin activities on the firm’s wallet. In addition, Nigeria also leads the world in search engine activity related to BTC according to trends in Google. These statistics show that Nigerians are moving rapidly in their day-to-day life to digital transactions as their passion for crypto continues to grow.

Most Nigerians use Bitcoin for a variety of reasons, including paying for goods and services. Bitcoin also serves as an investment option, owing to its growing financial market value. Since Bitcoin accessibility and decentralized nature works in favor of the majority of unbanked Nigerians, they still use the crypto as a reserve payment option even to process cross-border payments.

Cryptocurrency adoption on the rise in Africa

The country is closely followed by other nations like South Africa, Ghana, Austria, and even Switzerland as the top Five nations that lead in Bitcoin Google searches. Notably, although Nigeria topped the charts on Blockchain.com back in April, Peru was the most active nation throughout July. India and Indonesia closely followed Peru as the top three nations in wallet transactions in July.

Furthermore, there has been a steady rise in crypto transactions done on the African continent. Nations like Kenya, Ghana, and South Africa have recorded an increased influx of Bitcoin transactions. It is now evident that more people are developing a liking for crypto, hence the increased adoption recently. 

Tech Mahindra launches the ‘Blockchain Based Contracts and Rights Management System’ on IBM Blockchain

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Indian Tech and IT services multinational company Tech Mahindra has launched a new digital platform dubbed the ‘Blockchain-based Contracts and Rights Management System’ (bCRMS) for the entertainment industry. BCRMS was created using the IBM blockchain infrastructure that uses the enterprise-grade open-source Hyperledger Fabric blockchain. The digital platform enables content creators and production companies to track revenue, pay royalties, manage rights and tackle content piracy, with the platform currently focused on video content. The system will also streamline the procedures involved in contracts and remunerations plus helps combat piracy

Is blockchain the ultimate solution to piracy?

In particular, the Indian tech firm is launching bCRMS solutions for both linear broadcast and over-the-top ( OTT) providers, such as video streaming networks. The emergence of online streaming services was welcomed with open arms to the digital content sector. However, its rise to prominence has led to other challenges such as content piracy.

The menace of digital content piracy is the main problem that Tech Mahindra is trying to solve by launching bCRMS. The issue of content piracy is echoed in a recent statement by Tech Mahindra’s Blockchain and Cybersecurity Practice Leader, Rajesh Dhuddu. He cited an estimate by Intertrust software company that online piracy will result in a $50 billion loss of revenue by 2022.

Tech Mahindra’s platform to provide online streaming services as well

The firm will achieve this by providing online content with an identifiable digital fingerprint that can help track it. The bCRMS platform uses tactics such as hashing and forensic watermarking to allow media and entertainment (M&E) companies to monitor and track where the content has been distributed. Tech Mahindra hopes that the new system will allow related companies to curb illegal access to and distribution of licensed material.

In addition, Tech Mahindra ‘s latest innovation provides an unalterable audit path and provides service providers with precise data on download and streaming data. bCRMS also provides streaming services and automates royalty payments. According to Dhuddu, the platform can “orchestrate the entire media content life-cycle workflow across pre-production, post-production and distribution phases to enhance revenues”.

Coronavirus Pandemic to Trigger CBDC Development Globally

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The Bank of International Settlements (BIS) anticipates the effect of the coronavirus pandemic on retail payments to trigger positive development of CBDC globally. BIS is a Swiss-based international organization comprised of 60 central banks. The organization has released several reports centered on decentralization, cryptocurrencies, and central bank digital currencies (CBDC). CBDCs refer to state-issued cryptocurrencies, whose legal tender depends on the regulatory structure of a government.

Coronavirus impact on global payments

BIS ‘latest June 24 report suggests that the coronavirus pandemic has inflicted extreme changes in retail settlements. In addition, the report outlines the advantages and disadvantages of the current payment systems.

The report, for starters, highlights the rapid deterioration of fiat payments due to the risk of transmitting the virus between traders and consumers. And the economic uncertainty has caused “precautionary holdings” in fiat, leading to a decline in daily cash transactions.

Around the same time, restrictions levied by national governments, such as closing down tangible shops, have contributed to a steady decline in payment settlement on e-commerce. Besides, the fall in travel has led to a decrease in international visa transactions, and a substantial decline in remittances from migrants.

BIS says both of these changes show the benefits and limitations of the current payment system. Digital payment systems, on the other hand, have made it possible for many commercial operations to operate given the great disruption to daily activities.

“The crisis has amplified calls for greater access to digital payments by vulnerable groups and for more inclusive, lower-cost payment services going forward.”

Opportunity for CBDC development globally

In this regard, the BIS report outlines that CBDC development is globally at the frontier of policy opportunities “for central financial authorities;” could amount to a sea change. ” It notes that a successful CBDC could provide” a new, secure, trusted, and widely accessible digital payment method.

The BIS also noted that it would continue to offer its assistance to central banks worldwide in CBDC research and design. The organization has demanded global cooperation to ensure that post-COVID-19, future changes in international payments will be less split, more comprehensive, and more productive.

Italian Banks Express Desire to Test Digital Euro

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According to the recent report, Italian banks have expressed their desire to explore the European Central Bank Digital Currency. The Italian Banking Association (ABI), composed of 700 financial institutions, wants to accelerate the general implementation of the CBDC, which is backed by the European Central Bank ( ECB).

In regards, ABI has also handed out ten recommendations for a European digital currency during its Thursday announcement. The initial advice, which is the most important, suggests comprehensive complaisance with the appropriate European regulatory structure. On top of this, ABI also suggested financial sustainability as another crucial area.

Digital currencies are beneficial

The association also highlighted some advantages of a CBDC. It noted:

“A programmable digital currency represents an innovation in the financial field, capable of profoundly revolutionizing money and exchange. This is a transformation capable of bringing significant potential added value, particularly in terms of the efficiency of the operating and management processes”.

The development of a central bank cryptocurrency can aid in positioning Italy at a favorable spot to have proper administration of the country’s digital landscape. The features of the digital Euro can offer additional security to the financial system, on top of eliminating the inconveniences related to critical financial transactions like transferring of funds.

Furthermore, digital currencies can help a country achieve a completely cashless economy. This is particularly cost-effective since the cost of developing fiat currencies will be slashed or wholly abolished.

Italian banks dawn of innovation

The announcement highlighted the fact that digital currencies are programmable positions them as crucial innovations in the finance sector. ABI stated that Italian banks believe that the development of digital currencies will immensely revolutionize money and the financial system altogether.

Italy has joined several other countries that have expressed the desire to deploy a central bank digital currency. Early this year, the Bank of France asked the public to submit proposals for the possible experimentation of a CBDC. Furthermore, South Korea also established a panel early this month to research digital currencies. 

Singapore Central Bank Confirms its Readiness to Explore Digital Currency

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Singapore’s central bank is looking to join forces with the People’s Bank of China (PBoC) to explore Central Bank Digital Currencies, according to Ravi Menon, Managing Director of the Singapore Monetary Authority (MAS).

During a finance conference in Shanghai, Menon stated the new plan. He outlined the progress China has made in creating its own CBDC, and said Singapore was looking to share information and experience in this field with China. Singapore is conscientiously looking to build a central bank digital currency.

Menon stated the new plan during a financial conference in Shanghai. Additionally, he outlined China’s digital Yuan development progress. Singapore is conscientiously looking to build a cryptocurrency central bank and is looking forward to exchanging skills and expertise with China, as reported by Sina Finance on 18 June.

Singapore exploring Central Bank Digital Currency

Menon allegedly stated that the state-issued cryptocurrencies were a hot topic, outlining that Singapore and China are deliberating on various CBDC development scenarios.  He also noted that the reasons for developing a Digital Currency Central Bank differ on a country-by-country basis.

However, he stated that Singapore ‘s reason for developing a CBDC is to cut the cost of cross-border payments and settlements, protect transactions through blockchain, and reduce payment processing time.

Facebook Libra project challenge to central banks

Menon also mentioned that the embattled Facebook Libra stablecoinn is facing and said that Libra is a major challenge to the global central bank system. He also asserted that the Libra stablecoin has “great flexibility” and that the team behind its development is committed to working closely with international regulators.

The Singapore Monetary Authority has been developing its interbank blockchain-based payment system since 2016. The Ubin Project, which was officially launched in 2018, is a partnership to explore the application of blockchain technology to clear and settle payments and securities.

China’s plan to counter Facebook Libra project and USD

Back in June 2019, PBoC was in a rush to launch its CBDC ahead of Facebook Libra’s stablecoin. Although the digital yuan is undergoing pilot tests in various Chinese cities, experts suggest that China might deploy it with the public, not noticing the change. Furthermore, early in June, reports broke out that China is planning to develop an East Asia digital currency to reduce the over-reliance in the United States dollar. 

Three Arrow Capital Becomes First Qualifier to Hold most GBTC Shares

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Founded by Su Zhu and Kyle Davies, Three Arrows Capital hit the headlines back in April after investing in BlockFi. Singapore‘s registered hedge fund has resurfaced once again after becoming the first qualified investor to hold more than 5 percent of the Grayscale Bitcoin Trust (GBTC) shares. The cryptocurrency hedge fund now owns 6.26 percent of GBTC shares..Su Zhulu, the co-founder, shared a bullish sentiment about the GBTC share market. The co-founder said :

“We are bullish on the GBTC demand,” Zhu told The Block. “Premium means inflows. There can be no premium without inflows.”

To date, the hedge fund has accumulated almost $259 million worth of GBTC shares. This is estimated at approximately 21 million GBTC shares or more than 20,230 bitcoins. Kyle Davis said that the Fund filed Schedule 13D form with the United States Securities and Exchange Commission ( SEC) today. The filing noted that the hedge fund currently holds 6.26% of GBTC shares, but SEC will publish the filing tomorrow.

Five days ago, Su Zhulu appeared on the Coinist Podcast, talking about Bitcoin’s “Bart Simpson” patterns. During the discussion, Zhulu dismissed the patterns as a result of bitcoin manipulation.

Not clear whether or not the amount includes bitcoin deposits from the hedge fund

Whether the Hedge fund deposited bitcoins in exchange for the shares is not yet clear, because the co-founders have not yet commented on the same.   Notably, most of these investments occur after institutional investors arbitrate premium. Popularly known as in-kind inflows, these arbitrage premiums are executed over the net asset value.

Davies said they anticipate fresh inflows as Nasdaq hits new all-time highs. Additionally, the stakes for strong inflows remain high with bitcoin trading near $10,000.

Grayscale  Bitcoin Trust Shares have high assets worth at least $3.65 under its belt. This figure represents the total amount of bitcoins that it holds in trust. The product of Grayscale witnessed in-kind inflows of 80 percent during the third quarter of 2019.

 

 

Public Opinions to be Considered by OCC to Determine the Future of Cryptocurrency Regulations

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Over the last few years, the cryptocurrency market has come to the forefront as a challenger to the mainstream fiat industry. Established regulators in the United States have become more inclusive in discussing the virtual asset industry, and the evidence for this has now become stronger.

In a recent publication by the US Office of the  Comptroller of the Currency  [OCC], the organization asked the public for its opinion on the operating rules and functions relating to cryptocurrencies. This comes as a victory for a field that has been shunned for the longest time.

The OCC will seek public comments and update its rules on the activities and operations of the national bank and the federal savings association. In addition to the latest release, the OCC also released an Advanced Notice of Proposed Regulations [ANPR], which will clarify the rules and regulations relating to the activities referred to above.

The document was signed by Brian Brooks, former Chief Legal Officer of Coinbase. Brooks took up his new role at the OPCC a few days ago, a move seen as a positive marker for the digital asset industry.

An excerpt from the release read:

“The NPR is part of the OCC’s continual effort to modernize its rules and remove unnecessary requirements to relieve banks of unnecessary burden, encouraging economic opportunity and promoting the safe, sound, and fair operation of the federal banking system. The ANPR is part of the agency’s effort to support the evolution of the federal banking system and its ability to meet the needs of the consumers, businesses, and communities it serves. “

The OCC claimed that the latest move was part of the body’s commitment to responsible innovation in the cryptoverse. The body believed that banks and other traditional institutions must be able to evolve to meet the needs of ” consumers, businesses and communities” that rely on them. The concept of inclusivity was reiterated with the OCC stating that all stakeholders in the space needed to have their voices heard.

Cryptocurrency supporters were given a boost when the OCC recognized that the industry had come a long way since the public reveals of Bitcoin in 2009. Additionally, the body pointed out that developments made by companies like PayPal had paved the way for innovations like mobile banking, which was was looked down upon earlier.

 

Crypto-Jacking Post Office Head Indicted in Russia

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The Russian police have arrested a crypto-jacking post office head, who used computers in his post office branch to mine digital currencies. According to local reports, the now-former regional post office head used to illegally mine cryptocurrencies while on the job.

The local police started investigations on the former post office chief who managed to use his branch’s computers to obtain digital currencies. in a town of Mineralnye Vody located in the South of Russian.

As per the report by the local news outlet, the SU Investigative Committee of Russia for the Stavropol region; the former regional head allegedly installed specialized hardware on the office’s computer system and mined digital currencies for almost six months. The project set by the crypto-jacking post office head dates back to September 2019.

Crypto-jacking post office head caused damages worth $427.50

Moreover, according to law enforcement, the Federal Postal Service of Stavropol Territory, suffered damages worth over 30,000 Russian rubles ($427.50). The former post office chief will be arraigned for “abuse of power,” as set forth by the law of the Russian territory.

The detectives in charge of the case are still in the evidence collection stage. In addition, the identity of the accused remains anonymous as the local authorities continue with investigations; with the criminal charges not yet filed. 

Cryptocurrency mining suppression in Russia

Furthermore, a similar incident was reported in Russia’s city of Saint Petersburg back in March. The local authorities coordinated an operation to crack down Bitcoin miners in the region; who illegally consume $200,000 worth of electric power every month to run their mining operations.

The crypto mining criminals managed to establish eight stations in different locations  using complex electric metered programs to downplay the actual power consumption; while connecting their cryptocurrency mining equipment to the national grid directly