STOCKS TELEGRAPH

Tag: United States

  • Senate hearing on CBDC – No CBDC for the US?

    Senate hearing on CBDC – No CBDC for the US?

    The US regulators are torn between their stance on cryptocurrencies. Where one side would like to see the total adoption and acceptance of cryptocurrencies, the other side does not want anything to do with cryptocurrencies.

    After China rolled out its version of central bank digital currency – the digital yuan – the US also took its first step towards the initiative. A senate hearing was organized for discussion on the viability of a CBDC – a digital dollar. However, the session did not go as well as some may have hoped.

    Senator Elizabeth Warren thrashed the cryptocurrencies – throwing even the possibility of a digital dollar out of the window. The speech of Senator Warren was all that was left after the session as the for-side’s arguments failed to convince the senator. Senator Elizabeth Warren called cryptocurrencies “a lousy investment” and a “haven for illegal activities”. The senator’s argument revolved around the volatility of cryptocurrencies and how that makes them unfit to take the role of a digital currency.

    Furthermore, Warren also highlighted the role of cryptocurrencies in the recent ransomware of JBS USA and Colonial Pipeline. Per the senator, cryptocurrencies lack all the characteristics that a digital currency needs to have – wide acceptance, security and stability.

    The arguments of the four witnesses varied but all favored a centrally-issued digital currency. Pros like lower fees and increased efficiency were cited in the support. China was also a major pro-argument. As the country launched its own digital yuan, more developments in the space can be expected from the country. The only way the United States can catch up with China is by taking an initiative in this direction as soon as possible. The digitization of the world would eventually require the US to issue a digital version of the dollar if it wants the dollar to remain the global reserve currency.

  • Bitcoin ransomware to have the same priority as terrorism

    Bitcoin ransomware to have the same priority as terrorism

    The United States Department of Justice has announced to elevate the status of ransomware. Now, ransomware will have the same priority as terrorism, according to a news report from Reuters. As high-profile cases of ransomware are becoming rampant, the Department of Justice had taken note of the rise.

    The House Committee on Oversight and Reform has also taken notice of the issue. The head of the committee Carolyn Maloney has requested documents from ransomware victims to investigate the issue. Ransomware has now become a political issue – bringing in cryptocurrencies to the negative limelight.

    The advent of blockchain technology and cryptocurrencies may be considered one of the best innovations of the new century. It is believed to possess the potential to change the world. With the globe moving towards digitization, decentralized technologies are the new favorite as institutional behemoths garner increasing control of the world’s resources. However, decentralized technology like cryptocurrencies also come with a lot of issues.

    Recently, cryptocurrencies have become a means of facilitating online ransomware. There has also been observed a spike in illegal activities like money laundering and tax evasion due to cryptocurrencies but ransomware is gaining more popularity.

    A Russian hacker group that goes by the name of DarkSide had recently targeted Colonial Pipeline – the largest pipeline for refined oil products in the U.S – demanding a ransom in Bitcoin. The company reportedly paid a multi-million ransom to the hackers as the hack took out most of the oil and gas supply in the East Coast.

    Another Russian hacker group called REvil targeted JBS USA – a leading meat processing company. The hack took out meat plants throughout the nation. Although the company has not revealed whether or not it paid the ransom, these high-profile hacks have resulted in cryptocurrency ransomware increasing in priority.

  • The IRS is After Cryptocurrency Holders With John Doe Summons

    The IRS is After Cryptocurrency Holders With John Doe Summons

    The United States Internal Revenue Service is after the cryptocurrency market and it is not going to back off anytime soon. The IRS Commissioner, Charles Rettig, had held the crypto market responsible for a gap of $1 trillion in the tax revenues. Per the commissioner the complexity and lack of transparency in the crypto market when it comes to taxpayers’ information has resulted in uncollected revenues.

    The commissioner had also stated IRS’s cybercrime unit to be actively looking into the matter. Operation Hidden Treasure has been initiated by the IRS which tracks taxpayers who omit cryptocurrency holdings from their tax returns.

    A federal court has authorized the IRS to serve John Doe summons to Circle Internet Financial Inc. and any of its subsidiaries or affiliates. The Circle is a digital currency exchanger based in Boston and the IRS plans on accessing records of Americans who have engaged in any sort of business through Circle. The John Doe Summons does not identify or list any names, neither does it alleges the Circle of wrongdoings. It is a mere tool of the IRS to identify any person or group of persons who are suspected to have been non-compliant.

    According to the commissioner of IRS, the authorization of John Doe summons has brought the IRS one step closer to its aim of tax collection. It will enable the IRS to identify tax evaders and enforce the law.