Connect with us

Blockchain

Coronavirus Serves as a Reminder: Today’s Payments System Is Broken

Republished by Plato

Published

on

The coronavirus, once novel, has been the story of the year. One subplot to the pandemic horror show has been the frailties of the legacy banking system laid exposed.

Several governments issued stimulus packages directly to their citizens in order to keep consumer spending up and the economy ticking over. Limitations in the banking system created bottlenecks. Technical difficulties caused delays in getting people necessary cash. Weeks then months went by. These delays harmed citizens and jeopardized small businesses, which in turn increased the likelihood of defaults on loans. 

This problem was not just political, medical and economic, but also technical in nature. The result of terminal payments rails and decades of unequal access to financial services.

Consider what would have happened if a government had leveraged cryptocurrency in order to distribute money quickly and efficiently. 

Payments could have been linked to existing government data on taxpayers. A government body could have created individual wallets for distribution of the payments, removing slow moving banks and financial institutions from the equation. The elderly or other high risk people would not have needed to leave their homes to cash checks. The money would be delivered instantly and safely. 

Distributing passwords and confirming identities would be a security challenge, but by drastically reducing the interface with banks this would be an eminently solvable problem.

Achieving widespread crypto use

Another benefit of this approach would have been to introduce a wider market to the benefits of cryptocurrency, including the greater autonomy it provides when it comes to seeking stable opportunities to save.

While cryptocurrency is castigated for its volatility, the economic repercussions of the pandemic have also rattled fiat currency markets. Some governments, including those of the US and the UK, responded to the global recession brought on by the virus by printing money in order to spend their way out of it, causing inflation and fluctuations in currency value.

Providing individual savers with greater access to cryptocurrency would allow individuals to decide the best place for their money, while setting levels of volatility and risk that suits their needs, rather than being at the whim of their central bank.

Moving from an economy driven by fiat currency to one with more diverse types of money is a huge undertaking, but the widespread shortcomings that became evident during 2020 show why it is necessary.

The government policy and regulation needed to facilitate such a move should respect the fact that cryptocurrency is and should remain decentralized, while giving traditional institutions such as banks and governments the ability to act as prominent nodes in the new financial network, rather than gatekeepers. 

Retail users of cryptocurrency will be attracted to the benefits of decentralization, but will also require some regulation to offer some protection against the negative behaviour associated with cryptocurrency.

Given one study found over 80% of initial coin offerings turned out to be scams, this would be reasonable and prudent. There is an opportunity for regulation to spur growth and innovation rather than dampen it, particularly as the blockchain and crypto industries mature and move away from bad actors. 

Getting regulation right

When the US passed unified regulation of cryptocurrency across 49 states, in September 2020, it represented a positive step in this direction. This is an example of consistent regulation being preferable to excessive decentralization, as it reassures new users and allows for institutions to offer clear and scalable guidance on buying and exchanging cryptocurrency.

SEC Chairman Jay Clayton recently stated that bitcoin is “a source of value that is driven by inefficiencies in our current payment mechanisms.” This is an endorsement of sorts, showing that cryptocurrency has the potential to improve existing mechanisms. But he also noted that as bitcoin grows, the need for regulation will increase.

This regulation should be progressive and based on changeable principles rather than rigid requirements. Technology evolves quickly, especially in nascent sectors like cryptocurrency, so regulation should be flexible and adaptable. This provides reassurance and stability to users without putting a brake on innovation. 

We have to be realistic about the adoption curve of cryptocurrency, at a time when we are still moving out of the early adopter phase. It is always worth remembering that it took about 50 years for credit cards to become ubiquitous.

But we should also recognize that the pandemic has been an accelerant on the uptake of financial technologies, with IBM predicting e-commerce uptake has leapt forward five years, and RetailDive noting a considerable increase in retailers accepting contactless payments.

The use cases that early crypto evangelists have always referenced are playing out before our eyes in the US, Europe, in Asia, and around the globe, so the conditions are ideal to turn ideology into practical progress.

The first country to bring cryptocurrency to retail users at a significant scale will reap massive benefits by reducing bureaucracy, increasing financial independence, and streamlining systems of payment across the economy.

That’s why we need to work diligently to ensure that the US will have the foresight to adopt and activate strong, new policies toward contactless digital payments and cryptocurrency that will make them the global leader in the new world of financial interaction.

NOTE: The views expressed here are those of the author’s and do not necessarily represent or reflect the views of BeInCrypto.

Share Article

Sheffield is the founder and CEO of a major bitcoin ATM network, Coinsource.

Follow Author

Source: https://beincrypto.com/coronavirus-serves-as-a-reminder-todays-payments-system-is-broken/

Blockchain

Ethereum EIP-1559 Targeting Gas Fee Challenges to be Implemented in July

Republished by Plato

Published

on

The contentious Ethereum Improvement Proposal (EIP) 1559, will be included in its codebase in July this year. This became clear during the All Core Developers call today.

EIP 1559: What Does it Mean for Fees?

Ethereum’s Improvement Proposal 1559 is aimed at improving the overall Ethereum’s user experience when it comes to transaction fees.

Typically, a user would have to send a gas fee to a miner for their transaction to be included in a block. What EIP-1559 proposes, however, is to send that gas fee to the network itself. Called basefee, this is a sort of a “burn” and there would only be an optional tip that’s paid to the miners. The burnt fee would be set algorithmically, supposedly improving the UX.

The proposal was originally submitted by Eric Conner and its summary provides an overall outlook at what it attempts to achieve:

A transaction pricing mechanism that includes fixed-per-block network fee that is burned and dynamically expands/contracts block sizes to deal with transient congestion.

During today’s All Core Developers call, it was decided that it will be included in the so-called London hard fork coming this July.

ADVERTISEMENT

Some Miners Disagree

Despite the potential improvements on the entire network that could come with EIP-1559, some of the largest Ethereum mining pools have openly displayed division on where they stand.

F2Pool, the third-largest ETH mining pool with over 10% hashrate share, shared a post, in which it supported the initiative, claiming that it would ultimately have a positive impact.

The publication says that “the general community along with core developers are siding with evolving Ethereum to include EIP-1559. It is important to side with the users and core contributors.”

F2Pool’s statement also argued that the potential EIP-1559 implementation could be factored in ETH’s price, which is more than 100% from the start of the year.

In contrast, though, the largest mining pool with nearly 25% share of the hashrate, Sparkpool, didn’t feel the same way about the integration as it could reduce the profits. They took it to Twitter to emphatically assert that the mining pool “opposes EIP-1559.”

SPECIAL OFFER (Sponsored)
Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

You Might Also Like:


Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
The Easiest Way to Way To Trade Crypto.
Check out Nord
Make your Money Grow with Mintos
Source: https://cryptopotato.com/ethereum-eip-1559-targeting-gas-fee-challenges-to-be-implemented-in-july/

Continue Reading

Blockchain

Uniswap, Crypto.com Coin, Compound Price Analysis: 07 March

Republished by Plato

Published

on

Uniswap broke out past the $29.3 level of resistance, while Crypto.com Coin was in a phase of consolidation. Compound bounced off the $450 level of support to touch $500 but could see a pullback to $470.

Uniswap [UNI]

Uniswap, Crypto.com Coin, Compound Price Analysis: 07 March

Source: UNI/USDT on TradingView

UNI broke out and went past the $29 area of resistance, where the 23.6% retracement level and the $27.3 level of resistance lay. The upward move had extraordinary volume as UNI touched $31.54 but some selling pressure was seen in the subsequent trading session.

The Doji candle represented short-term exhaustion from the bulls, and the breakout could see UNI pullback to test the $29.3 level to confirm its flip from resistance to support.

The MACD showed strong bullish momentum behind UNI. Bearish divergence on the hourly chart between momentum (MACD) and the price could be seen in the coming hours, which would likely see UNI pullback to $29.4. This can be used to enter long positions, with a stop-loss just at $28.7.

Crypto.com Coin [CRO]

Uniswap, Crypto.com Coin, Compound Price Analysis: 07 March

Source: CRO/USDT on TradingView

The Bollinger bands showed that CRO was in a phase of consolidation at and around its 38.2% retracement level at $0.152. The RSI moved back above neutral 50 to indicate that momentum was swaying towards the bulls’ side.

The defense of the 50% retracement level at $0.127 and the immediate bounce-off was a show of strength from bulls – the $0.146-$0.152 region can be used to accumulate CRO in expectation of another move upwards. The $0.173 and $0.189 levels are levels of resistance to watch.

Compound [COMP]

Uniswap, Crypto.com Coin, Compound Price Analysis: 07 March

Source: COMP/USDT on TradingView

Compound saw a strong bounce-off at the $450 mark which represents a 23.6% retracement for COMP’s move from $205 to $573. At the time of writing, COMP faced some resistance at the $500 area.

Moreover, the Awesome Oscillator on the hourly chart displayed a bearish twin peak set up and gave a sell signal. This development, followed by the AO registering bearish bars on its histogram, is likely to see the price dip to $470. Bulls would need to show some strength at $470, or bears can drive the prices lower to $450 once more.


Sign Up For Our Newsletter


Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
The Easiest Way to Way To Trade Crypto.
Check out Nord
Make your Money Grow with Mintos
Source: https://ambcrypto.com/uniswap-crypto-com-coin-compound-price-analysis-07-march

Continue Reading

Blockchain

Pakistan: Arrests made in Bitcoin extortion case

Republished by Plato

Published

on

The world of finance has never been able to protect itself from the fraudulent activities going around in the world. The cryptocurrency market, which itself is a growing space has also had its fair share of such fraudulent activity being associated with it. However, unlike traditional finance, regulators have been enforced stringent measures when it comes to tackling such offenses.

A recent case has been reported in Pakistan, where the police have arrested several people part of the country’s first extortion case via crypto. According to reports, the police arrested the owner of an outhouse where the complainants, two foreign nationals, were held hostage along with two other suspects.

One of the suspects was identified as Rana Irfan Mahmood and a case has been registered against him and an unidentified accomplice. The hostages were Swiss national Maria Spari and German citizen Stephen [last name remains unknown] who were kidnapped by three men in police uniform along with another person.

After threatening the hostages with a fake drug smuggling case, the victims paid 6,300 euros in cash and made an online transfer of 1.8 Bitcoin which was close to $9k. The suspects made a fake video demanding an additional Rs 300 million [$1.91 million].

According to SSP Investigation Abdul Ghaffar Qaisrani, the police have managed to recover the amount paid to the facilitator apart from the Bitcoin. The crypto has already been transferred to another account and the team was taking assistance from the intelligence agencies to recover it.

Although the regulators in Pakistan have been taking note of Bitcoin and crypto, illicit activities have been a growing concern in the region. In November 2020, the Central bank clarified that it was not banning crypto, contrary to the prevailing fear within many in the crypto-community.

In fact, Pakistan’s Securities and Exchange Commission [SEC] published a paper on the regulation of cryptocurrency trading platforms. This paper outlined the regulatory approach to crypto and included recommendations given by the Financial Action Task Force [FATF], as well as regulations presented by Malaysia, Hong Kong, and the U.S.

However, the police in the country have warned users and the government about the rising cases of ransom and extortion related to crypto. Bitcoin has been at the center of these cases and such fraud activities will only instill fear with the lack of regulation among crypto users in the region.


Sign Up For Our Newsletter


Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
The Easiest Way to Way To Trade Crypto.
Check out Nord
Make your Money Grow with Mintos
Source: https://ambcrypto.com/pakistan-arrests-made-in-bitcoin-extortion-case

Continue Reading
Blockchain4 days ago

Amplifying Her Voice

Blockchain4 days ago

Bitcoin Halving: Definitive Guide (In Just 5 Minutes)

Blockchain2 days ago

How to Protect Yourself from the Cryptojacking Threat

Blockchain4 days ago

Libra Coin – A New Digital Currency Developed by FACEBOOK

Blockchain4 days ago

Blockchain in Sports Betting

Blockchain4 days ago

Will Netflix soon buy bitcoin?

Blockchain5 days ago

DeFi token CRV spikes after reports PayPal acquired unrelated custody firm Curv

Blockchain3 days ago

BitGo To Introduce Crypto Custodial Services To New York Clients

Blockchain3 days ago

Experts divided on BTC predictions: Bullish or super bullish?

Blockchain2 days ago

Mark Cuban’s Dallas Mavericks to Accept Dogecoin Payments

Blockchain5 days ago

DEX aggregator 1inch integrates Bitquery’s API-powered crypto trading data

Blockchain3 days ago

Bitcoin “Cheat Sheet” Calls For Next Leg Up To $77K

Blockchain3 days ago

Analyst tells Tesla to dump Bitcoin for buybacks as shares plunge alongside MSTR’s

Blockchain2 days ago

Thailand’s largest movie theater chain accepts Bitcoin

Blockchain4 days ago

3 key Ethereum price metrics show pro traders are aiming for $2K ETH

Blockchain3 days ago

Ethereum gas fees drop as daily DEX and DeFi volumes decline

Blockchain3 days ago

TA: Bitcoin Price Back Below 100 SMA, Why BTC Could Retest $45K

Blockchain2 days ago

Decentralized Companies Are the New Norm and It’s the DAO Revolution That’s Making It Possible

Blockchain4 days ago

The Hard Sell

Blockchain3 days ago

XRP Price Analysis: 04 March

Trending