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Lawyers warn of Facebook’s Libra tax risks in Europe
Lawyers warn of Facebook’s Libra tax risks in Europe
Facebook’s proposed digital currency, Libra, will cause immediate tax problems for users in Europe that will hamper its mainstream adoption, according to leading tax lawyers. The tax problem stems from Facebook’s idea to peg the value of Libra to a basket of currencies globally rather than fix it in value against its users’ domestic currency.
#Fintech#Stablecoins#CryptoAssets#AltCoins#Facebook#Libra#DFC
·ft.com·
Lawyers warn of Facebook’s Libra tax risks in Europe
Market Design for a Blockchain-Based Financial System
Market Design for a Blockchain-Based Financial System
We develop a theory of long-run equilibrium in blockchain-based financial systems. Our theory elucidates the key market design features that separate proof of work and proof of stake approaches in the long run. Under proof of work, wasteful computation is used to secure the system, and users' utility in equilibrium is determined by the threat of a fork. Under proof of stake, by contrast, users' utility in equilibrium is generally above the fork threat level because custodians can use relational contracts to incentivize a higher quality of service. Relational contracts under proof of stake rely only on local institutions - but combining them with cryptography can create a platform for formal global contracts.
#Stablecoins#Facebook#Fintech#AltCoins#CryptoAssets#Libra#DFC
·papers.ssrn.com·
Market Design for a Blockchain-Based Financial System
XRP, Libra and Visa to Fight It Out for Cross-Border Remittance Crown
XRP, Libra and Visa to Fight It Out for Cross-Border Remittance Crown
The increased penetration of cryptocurrency in the digital payment arena appears to be affecting the landscape of cross-border remittances. Financial institutions and other mainstream establishments are now jostling with blockchain startups for control over an industry that could possibly experience massive growth over the next few years.
#AltCoins#Facebook#Blockchain#Ripple#CryptoAssets#Fintech#Stablecoins#Libra#DFC
·cointelegraph.com·
XRP, Libra and Visa to Fight It Out for Cross-Border Remittance Crown
Is Tether a factor in bitcoin's price surge?
Is Tether a factor in bitcoin's price surge?
Although crypto speculation surely increased after the social media giant’s announcement, bitcoin’s recent rise might also have something to do with another digital token, Tether, a US dollar-pegged unit commonly used to trade bitcoin on exchanges that lack banking partners. Tether is issued and redeemed by a company of the same name.
#Fintech#AltCoins#Tether#Stablecoins#CryptoAssets#DFC
·qz.com·
Is Tether a factor in bitcoin's price surge?
The Coming Libra Panics
The Coming Libra Panics
But if Facebook introduces seamless international transactions for the general public, runs will become commonplace. Inevitably, governments will have to step in to introduce a new form of friction to the system. One partial solution is a small universal financial transaction tax of the type proposed 50 years ago by the Nobel laureate economist James Tobin.
#CryptoAssets#Fintech#AltCoins#Stablecoins#CrossBorder#Facebook#Libra#DFC
·project-syndicate.org·
The Coming Libra Panics
Bitfinex Repays Tether $100 Million of $700 Million Loan
Bitfinex Repays Tether $100 Million of $700 Million Loan
Bitfinex borrowed as much as $700 million from the stablecoin issuer through a line of credit in early 2019. The exchange needed the cash to make up for an $850 million hole which resulted from its payment processor, Crypto Capital, having its funds seized by authorities in three separate nations. On Tuesday, the exchange said it had transferred $100 million from its account to Tether’s.
#Fintech#CryptoAssets#AltCoins#Stablecoins#Tether#Bitfinex#DFC
·coindesk.com·
Bitfinex Repays Tether $100 Million of $700 Million Loan
Why Facebook's Libra currency gets the thumbs down | Joseph Stiglitz
Why Facebook's Libra currency gets the thumbs down | Joseph Stiglitz
The real problem with our existing currencies and financial arrangements, which serve as a means of payment as well as a store of value, is the lack of competition among, and regulation of, the companies that control transactions. As a result, consumers – especially in the US – pay a multiple of what payments should cost, lining the pockets of Visa, Mastercard,
#Facebook#Stablecoins#Fintech#CryptoAssets#AltCoins#Libra#DFC
·theguardian.com·
Why Facebook's Libra currency gets the thumbs down | Joseph Stiglitz
Congressional Committee Calls For A "Moratorium" On Facebook's Libra Project
Congressional Committee Calls For A "Moratorium" On Facebook's Libra Project
The backlash against Facebook’s Libra project has begun. The House of Representatives’ Committee on Financial Services has written to Mark Zuckerberg, Sheryl Sandberg, and the chief executive of Calibra, David Marcus, asking for a moratorium on the development of both Libra Coin itself and Facebook’s bespoke wallet, Calibra.
#AltCoins#Stablecoins#Facebook#Fintech#CryptoAssets#Libra#DFC
·forbes.com·
Congressional Committee Calls For A "Moratorium" On Facebook's Libra Project
Libra, 2 weeks in | David Marcus
Libra, 2 weeks in | David Marcus
Facebook’s blockchain head, David Marcus, wrote a blog post trying to clear up some common questions about Libra. Among the points: Facebook won’t control the currency, and it’s meant primarily to help unbanked and underbanked people participate in the financial system. If Facebook benefits, it will be because people find it easier to transfer money using Facebook products.
#Fintech#CryptoAssets#AltCoins#Stablecoins#Facebook#Libra#DFC
·facebook.com·
Libra, 2 weeks in | David Marcus
Libra's Unresolved Puzzles
Libra's Unresolved Puzzles
Exactly what kind of money will Libra be? The white papers under-specify the core mechanism that is supposed to control the value and quantity of Libra. Is the Libra Reserve really like a currency board? Or is Libra meant to be like a mutual funds share, redeemable (by authorized resellers, not by the public directly) at the net asset value of a low-risk mutual fund diversified across several fiat currencies?
#Fintech#CryptoAssets#AltCoins#Stablecoins#Facebook#Libra#DFC
·alt-m.org·
Libra's Unresolved Puzzles
Libra's Unresolved Puzzles
Libra's Unresolved Puzzles
My best guess is that Libra is meant to be like a mutual funds share, redeemable (by authorized resellers, not by the public directly) at the net asset value of a low-risk mutual fund diversified across several fiat currencies. The public can buy and sell Libra "coins" in exchange for existing fiat money. Also, unlike an ordinary mutual fund, which allows members of the public to buy shares directly and sell them directly back to the fund at their current net asset value, Libra only allows Resellers to interact directly with the Libra Reserve.
#Fintech#CryptoAssets#AltCoins#Stablecoins#Facebook#Libra#DFC
·seekingalpha.com·
Libra's Unresolved Puzzles
Facebook has found a place to park its $40bn+ cash reserves and everyone thinks its about crypto…
Facebook has found a place to park its $40bn+ cash reserves and everyone thinks its about crypto…
Libra is a massive money market fund that doesn’t pay any interest to coinholders, probably in part to avoid being qualified as a security by the SEC. It does, however, pay this interest to Libra Association members, who all have massive idle cash reserves to park profitably at the Libra Association. For example, Facebook, which has over $40 billion in cash liquidity, could "pre-mint" Libra, which it will then sell to users, and buy it back when they want to get out of it.
#Fintech#CryptoAssets#AltCoins#Stablecoins#Facebook#Libra#DFC
·hackernoon.com·
Facebook has found a place to park its $40bn+ cash reserves and everyone thinks its about crypto…
Libra and Financial Inclusion
Libra and Financial Inclusion
"What the Libra discussion totally misses is how consumers are going to get value into the Libra system in the first place.  If I have cash, how do I put funds on Libra?  I’m going to need to go through a bank or other financial institution, and it’s not going to be free.  Same if I want to take money out of Libra."
#Fintech#CryptoAssets#AltCoins#Stablecoins#Facebook#Libra#DFC
·creditslips.org·
Libra and Financial Inclusion
Bitcoin: Welcome to Bitfinex’s Second Tether Bubble
Bitcoin: Welcome to Bitfinex’s Second Tether Bubble
Our previous post in November last year provided compelling empirical evidence that USDT printing was used by Bitfinex to manipulate the BTC/USD price upwards during the fourth quarter of 2017. And until the current allegations are proved one can only conjecture, but we conclude that the crypto market is now entering its second tether bubble.
#Fintech#CryptoAssets#AltCoins#Stablecoins#Tether#Bitfinex#DFC
·medium.com·
Bitcoin: Welcome to Bitfinex’s Second Tether Bubble
A Monetary Review of Project Libra — Part 1: The Libra Reserve
A Monetary Review of Project Libra — Part 1: The Libra Reserve
This article seems to sppeculate that the Libra Association will effectively run open market FX operations to maintain the stability of the Libra against the currency basket. Although the article doesn't mention it, I guess it's implicit that the huge cash balances of Facebook ($50B+) and other Association members are in effect FX reserves for these purposes.
#Fintech#CryptoAssets#AltCoins#Stablecoins#Facebook#Libra#DFC
·hackernoon.com·
A Monetary Review of Project Libra — Part 1: The Libra Reserve
Facebook's Libra Lacks Foundational Components for Crypto Key Security
Facebook's Libra Lacks Foundational Components for Crypto Key Security
A review of their technical documentation describing the Libra protocol and the associated ecosystem, reveals that they left out the foundational components of user security: Protection of the private key, proof of user consent, decentralized compliance and global privacy.
#Fintech#CryptoAssets#AltCoins#Stablecoins#Facebook#Libra#DFC
·coindesk.com·
Facebook's Libra Lacks Foundational Components for Crypto Key Security
Libra Isn't a Cryptocurrency. It's a Glimpse of a New Asset Class
Libra Isn't a Cryptocurrency. It's a Glimpse of a New Asset Class
Even relatively simple fiat-backed stablecoins could be characterized as swaps or demand notes, both of which would be treated as securities. And the SEC’s head of digital assets, Valerie Szczepanik, confirmed at a hearing last week that it does not matter that the stablecoin 'does not have an expectation of profits' (with the usual caveat of “facts and circumstances”).
#Fintech#CryptoAssets#AltCoins#Stablecoins#Regulation#Facebook#Libra#DFC
·coindesk.com·
Libra Isn't a Cryptocurrency. It's a Glimpse of a New Asset Class
Lawyers warn of Facebook’s Libra tax risks in Europe
Lawyers warn of Facebook’s Libra tax risks in Europe
European Libra users will have to treat their Libra holdings as an asset for capital gains tax purposes — and for the UK, HMRC confirms that, as a basket of currencies, Libra doesn’t qualify as a currency itself. “The problem would potentially be even more serious with no annual capital gains exemption in France, Italy or Spain and a much smaller €600 limit in Germany."
#Fintech#CryptoAssets#AltCoins#Stablecoins#Facebook#Taxation#Libra#DFC
·ft.com·
Lawyers warn of Facebook’s Libra tax risks in Europe
Korean Watchdog Warns of Financial Stability Risk From Facebook's Libra
Korean Watchdog Warns of Financial Stability Risk From Facebook's Libra
South Korea's Financial Services Commission looks at what might occur if 2.4 billion Facebook users worldwide transfer one tenth of their bank deposits to Libra. Should that scenario come about, banks’ solvency would diminish, as would their loan reserves, representing a threat to emerging markets from the relocation of the capital out of those countries. The FSC also raised concerns that bank runs could occur during financial or foreign exchange crises, as people move their national fiat currency to Libra.
#Fintech#CryptoAssets#AltCoins#Stablecoins#Facebook#Libra#DFC
·coindesk.com·
Korean Watchdog Warns of Financial Stability Risk From Facebook's Libra
Gemini Dollar struggles to stay afloat with 88% decline in market Cap
Gemini Dollar struggles to stay afloat with 88% decline in market Cap
The circulating supply of the Winklevoss twins’ stablecoin Gemini Dollar (GUSD) is plummeting. From a peak market capitalization of more than $100 million in December of 2018, the coin recently hit new lows of $10 million. https://www.cryptopolitan.com/gemini-dollar-down-88-percent-in-market-cap/
#Fintech#CryptoAssets#AltCoins#Stablecoins#Gemini#DFC
·cryptopolitan.com·
Gemini Dollar struggles to stay afloat with 88% decline in market Cap