Mainstream credit company interest, a Bitcoin-backed Ethereum token, and IRS comments on crypto taxation, all while Bitcoin is still in a price range of around $6,400-$6,500 on Blockmodo real-time data.
Visa, Mastercard And The Future Of Cryptocurrencies
Many mainstream voices have changed their tune when it comes to interest in crypto and blockchain.
Mastercard filed a patent application yesterday “looking to apply the principles of fractional reserve banking to crypto assets, or as the credit card giant phrased it, ‘blockchain currencies’, according to a report by CryptoInsider.
Mastercard explained in their patent application: “Accordingly, the use of traditional payment networks and payment systems technologies in combination with blockchain currencies may provide consumers and merchants the benefits of the decentralized blockchain while still maintaining security of account information and provide a strong defense against fraud and theft”.
A New Token Is Coming To Ethereum – And It’s Fully Bitcoin-Backed
It seems as though the stablecoin craze is expanding. Only now there’s an Ethereum based token backed 1:1 with Bitcoin. The token will be called – wrapped Bitcoin tokens, or WBTC for short.
Several big-name crypto companies are involved in WBTC, including Kyber Network, Republic Protocol, and BitGo.
“Calling it ‘the best of both worlds,’ CTO of BitGo Benedict Chan characterized WBTC as possessing both ‘the stability of bitcoin and the flexibility of ethereum'”, reported CoinDesk.
IRS Advisors Call For More Tax Guidance On Crypto Transactions
Paying tax on cryptocurrencies may require further clarification regarding taxation on transactions and current Internal Revenue Service (IRS) laws.
A report from the Information Reporting Program Advisory Committee (IRPAC) lists questions such as: “Can cryptocurrency be considered a specified foreign financial asset? How is the basis determined for cryptocurrency that is sold? Does broker reporting apply to cryptocurrency transactions?”.
The report states many difficulties that are currently unclear, even as simple as what “transaction” means, with regard to crypto and taxes, as reported by CoinDesk.
Visa CEO: Crypto Doesn’t Challenge Our Hegemony In The Short To Medium-Term
Visa CEO Al Kelly made statements implying he isn’t afraid of a little competition from cryptocurrency in the near future.
“When asked if ‘crypto [is] a real challenge to Visa’s hegemony in this business,’ Kelly told Mad Money host Jim Cramer that it was ‘certainly not in the short to medium-term in any way'”, reports CoinTelegraph.
Kelly further elaborated that crypto is not a threat to the traditional payments sector unless it becomes less of a commodity and more of a method of payment.
All Quiet On The Crypto Front As Bitcoin, Altcoins Shun Volatility
Stability continues in crypto markets today as Bitcoin sees another historic low point in terms of volatility. Altcoins also remain uneventful in terms of price.
“On Friday, Bloomberg joined the multiple cryptocurrency industry commentators to highlight Bitcoin’s lack of volatility, with October 2018 being the least volatile for eighteen months. Commentators claimed this was a sign the leading coin was nearing its bottom”, CoinTelegraph explained.
