The crypto news today show that lawmakers in the US state of California have recently introduced a new bill that will allow all the cannabis-related businesses to pay fees and taxes in stablecoins. The bill was first announced on February 21st by the California State Assembly.
Thanks to the Assembly Bill 953, the city, state and county tax offices in California will accept stablecoins – which are basically altcoins pegged to a physical asset or a fiat currency – exclusively designed for cannabis-related businesses that seek to pay their excuse or cultivation taxes.
The bill will take effect from January 1st, 2020. As an excerpt from it reads:
“The bill would authorize that city or county in determining that method to either accept stablecoins directly into a digital wallet controlled by that jurisdiction or to utilize a third-party digital asset payment processor that allows for the immediate conversion of any payments made by stablecoins into United States dollars and deposit into an account of that jurisdiction.”
Meanwhile, cannabis is legalized in several states in the US, but the cannabis-related businesses have difficulties in securing simple financial services from banks, where the vast majority are secured by the Federal Deposit Insurance Corporation (FDIC) and are prohibited from offering their services in an industry that is still seen as illegal under federal law.
The good thing is that cannabis dispensaries can hold a lot of dollars in cash at any given time, and this bill seeks to streamline the cash operations and process the money in a new way.
“Duffel bags and sometimes suitcases of cash would arrive quarterly at some of our designated offices and some business owners had to drive 350 miles to pay their taxes,” said Fiona Ma, who is the California State Treasurer.
General Manager Of BIS Says Banks Should Not Issue Their Own CBDC
‘’There are huge operational consequences for central banks in implementing monetary policy and implications for the stability of the financial system. Central banks do not put a brake on innovations just for the sake of it, but neither should they speed ahead disregarding all traffic conditions.’’Banks and other financial institutions shouldn’t keep up with the technology of this kind because not every trend in the monetary space is good for the financial system and that they should be wary of hurting the functionality of the entire system. He keeps using the term ‘’financial panic’’ claiming that by issuing central bank-issued digital currency or CBDC, people would move out their money to commercial banks and this could lead to taking down the interest rates which could potentially harm the liquidity of the market. The general manager didn’t get much support from other bank executives. Multiple banks have already chosen to issue their own digital currencies or at least have plans to do so. For example, the Bank of England revealed they are considering the issuance of a new digital currency that will work similarly to Bitcoin. Also, IBM joined with Stellar and they introduced the Blockchain World Wire which is a project that guarantees banks the ability to issue their own stablecoins in the near future.
USDT-TRON Stablecoin Is Going To Be Listed On OKEx
OKEx Lists USDT-Tron As 4th Largest Bitcoin ExchangeStanding as fourth largest Bitcoin exchange by adjusted volume, OKEx has recently announced:
In order to meet users’ demand for stablecoin trading, OKEx will support USDT-TRON, the TRC-20 based USDT token co-developed by TRON and Tether, as well as the airdrop for USDT-TRON holders. By then, OKEx will support three protocols of USDT, namely USDT-Omni, USDT-ERC20, and USDT-TRON. Please stay tuned for our further announcements.What's important is the fact that centralized exchanges are not the real beneficiary of USDT-Tron right now. However, the majority of the Tron tokens trade on decentralized exchanges which run on the Tron blockchain. TRX itself has some stablecoin markets including Binance. As soon as USDT-Tron is live, the liquidity of the Tron economy will reshape and every token will have a price in both TRX and fiat. It will be similar to ERC-20 assets and their price in fiat - in fact fiat and demand have their own way of dictating the actual value of the tokens.
The Real Benefit OF USDT-TRXUSDT-TRON is currently great for TRX tokens. Since Tether (USDT) is the oldest pegged stablecoin, it has some authority on the market. The real question right now, however, is who will be next to cross the blockchain barriers since most of the stablecoins are only available on Ethereum. Among the other blockchains that could use the liquidity boost are EOS, NEO, Cardano, Aelf and Tezos. Any of these could benefit from the ability to quickly trade into a stablecoin without having to go through a centralized exchange, which is the real benefit of the USDT-TRX move. To sum things up, Tron and EOS are not far behind Ethereum in terms of the developer ecosystem. In fact, their userbases outpace Ethereum in terms of growth. However, in terms of liquidity and financial markets, Ethereum is the most dominant smart contract platform. All in all, the move to create a Tether stablecoin on TRX its a major leap forward for Tron.
Bitcoin Is Close To $4,100 As Tokens Gain 20%
"In my opinion, blockchain and crypto-related investment opportunities will be one of the fastest growing sectors in the alternative asset management space in the next 10 years. This means that every alternative asset manager will have to create a strategy to help their LPs gain exposure to the nascent industry," Pompliano said.Aside from the greens recorded in the top 20 cryptocurrencies, the best performers on the day include the names of Ontology, Ravencoin, Tezos, Huobi Token, and KuCoin Shares - all recording gains from 12% to 25% on the day.
Analyst: 90% Of Smaller Crypto Projects Will Result In Complete Loss
“No matter how these small projects are financed (via an ICO, premine, fair launch, dev reward, self-funded etc.), they are essentially young startups in a completely unproven technological field. Such startups are known to have an extremely high failure rate of about 90%,” the analyst explained.The "Wolf of Qtrade.io" also said that only Bitcoin, Ethereum and Monero are the coins that have "traction" and ones that should make up core crypto exposure.
"There’s no denying that there’s a realistic chance that somewhere in the 10% of the projects that survive lies a gem that ends up providing a 10x, 100x, or even 1000x return on investment," he said.Overall, his thoughts are very much in line with the other traders in the crypto community which now recommend investing only in the cryptocurrencies one can afford to lose and building the portfolio around high-cap coins such as Bitcoin and Ethereum.
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