First Gov’t to Accept Tax Payments in USDC Stablecoin!!!
Today I have four trending pieces to share with you, so let’s get started. First and foremost, Karma Automotive, the luxury electric car producers are now accepting crypto payment for its products at a store in Newport Beach. Next, as you guys remember just a few days ago, many major payment giants withdrew from the Libra Association. Today, the head of Facebook’s Calibra David Marcus reassured the general public that they are ‘absolutely not’ in jeopardy with these major players declining to join. Moving on, Bermuda, a British island territory in the North Atlantic Ocean, is now the first government in the world to accept crypto payment for tax duties. Lastly, according to an article from the Wall Street Journal, two former CFTC heads are offering up a plan for a government-sanctioned, blockchain-based digital dollar.
The Market Today
Today, unfortunately, guys, we have a market full of reds. Bitcoin is once again falling back to less than $8,000 with a 2.21% drop. Likewise, ETH and XRP are losing their value by 3.58% and 1.99% respectively. You can see other altcoins follow the plummeting trend as well.
Karma Automotive has begun accepting Bitcoin
Karma Automotive, a luxury electric car manufacturer has recently begun accepting digital currency as a means of payment at one of its stores in Newport Beach. If you buy a car at this store, you can pay for new vehicle purchases and related services with Bitcoin tokens. Karma CEO Lance Zhou said:
“We are opening our platform to serve as a test bed to help convert theoretical blockchain applications to practical use. Karma’s flagship store will support our efforts to prove emerging technology and provide the latest VVIP customer treatment offerings by accepting Bitcoin cryptocurrency.”
For those who are not aware, blockchain technology and now cryptocurrencies have entered the automotive industry. When it comes to blockchain, Ford Motor Company is developing the blockchain and geofencing technology to accurately track the distance driven by its energy-efficient vehicles. Meanwhile, BMW, General Motors, Ford, Renault, and Honda have initiated projects utilizing the blockchain to determine cars’ identification and facilitate payment system.
David Marcus: Libra is not in jeopardy
In a recent interview with Yahoo Finance on Oct. 15, the Calibra head David Marcus believed that the Libra project is absolutely not in jeopardy after the exit of seven giants. For those who are not aware, the giants include PayPal, Visa, Mastercard, Stripe, eBay, Mercado Pago, and Booking, who announced their withdrawal just ahead of the signing ceremony of the official agreement. David Marcus commented,
“One thing that is not well understood is that you don’t need to be a member of the Libra Association to build services and products. So if Visa and Mastercard want to issue cards for Libra wallet at a later stage, they can still do it without being members of the association.”
Marcus further expressed his respect to the seven companies’ decision to leave the project and thanked the firms for gaining the courage to look at potentially disrupting themselves. He understood that the companies have a responsibility to their shareholders.
Bermudian government is the first to accept crypto tax payment
According to a report on Cointelegraph, the British island territory in the North Atlantic Ocean, Bermuda has just become the very first government in the world to accept cryptocurrency for tax duty payments. This is part of a broader initiative, with the aim to support “the use of USD-dollar backed stablecoins and decentralized finance protocols and services.” According to Circle co-founder and CEO Jeremy Allaire, Bermuda is currently using a US dollar-backed currency, called the Bermudian dollar. Since Bermuda’s economy already relies on a United States dollar-backed currency (the Bermudian Dollar), it’s only natural they would embrace USD-backed stablecoins for their own government services. Allaire also claimed that Bermuda’s initiative highlights that the world is currently its way into mainstream acceptance of stablecoins for everyday payments and commerce. Allaire said:
“Through the DABA, Bermuda is one of the first countries in the world to create a comprehensive regulatory framework for digital currency and digital asset-based products and services, including licensing of firms operating payment systems using stablecoins. It will be interesting to see how other governments will respond to this fundamental innovation.”
Ex-CFTC heads proposed digital USD
In an article released by the Wall Street Journal on Oct. 15, two CFTC former heads Christopher Giancarlo and Daniel Gorfine mentioned that they need a blockchain protocol that can digitize cash, helping the dollar to compete “in the new digital era.” Giancarlo and Gorfine are concerned that with the current development of cryptocurrencies by central banks and corporate actors, it could soon “erode the dollar’s status as the most popular currency for international exchange.” In their vision, the new USD-backed coin will be government-sanctioned, blockchain-based and traded both domestically and abroad. Furthermore, the cash exchanged will be guaranteed by the Fed. They also pointed out the advantages of the proposed stablecoin, including the ability to make micropayments, as well as increased security and transparency enabled by cryptocurrencies.
And there you have it guys! So what are your thoughts regarding all the news?
Do you think that other industries will be leverage cryptocurrency payments?
Do you think the Libra token is in jeopardy?
How do you think other governments will respond to Bermuda’s innovation?
Is it a good idea to digitize the US dollar?
Please leave a comment right below to let me know what you guys are thinking.
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Disclaimer: Cryptopig content is written by a team of blockchain passionate people. We are not registered as investment advisors. Don’t take the information in this post as investment advice and make sure you do your own research before investing. Cryptocurrencies are a very risky investment, never invest more money than you can afford to lose.