Should corporations develop their own virtual currencies like bitcoin?
Companies have an interest in virtual currencies for many reasons. It develops a store of value inside of an ecosystem; it ensures that goods will be purchased inside of their own worlds. Generally speaking, it keeps more value inside their own fiefdom once a virtual currency has been exchanged for cash money. In the end, it appears to be a major value proposition. This is especially true for technology companies that do most of their business in the digital realm. With that being said, the recent history of corporate-backed virtual currencies is spotty at best. Let's take a look at some....
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The US Internal Revenue Services, IRS, has agreed to three key recommendations made by the US Treasury Inspector General for Tax Administration (TIGTA), which may introduce changes to virtual currencies such as Bitcoin. The currencies are presently used for tax purposes, especially by businesses in the US, according to a newly released tax review report. The TIGTA now views virtual currencies - especially Bitcoin which it says controls 82 percent of the entire virtual currency market - as allowing taxpayers to pay for goods and services in the same way as traditional currencies. The review....
Virtual reality is an artificial environment that is created with software and presented to the user in such a way that makes it look as a real environment. The virtual reality industry is expanding faster than ever as new investments are being made to support future VR-based applications. The industry is now making big efforts to develop new approaches and new tools to improve the usability and allow anyone to explore the full potential of this new technology. Virtual Reality also seems to be the perfect place to use virtual currencies and now two companies are trying to bring digital....
The Treasury Inspector General for Tax Administration recently released a paper on taxation of virtual currencies including Bitcoin, officially requesting the IRS to provide guidance for tax treatments of digital currencies and develop a strategic approach. Based on the 2014 tax guidance for virtual currencies released by the Internal Revenue Service (IRS), digital currencies like Bitcoin are considered labeled as property for tax purposes. The report of the US treasury reads: “The notice provides that virtual currencies should be treated as property for tax purposes. The same general tax....
In an effort to warn the public about the risks associated with virtual currencies, USA.gov published a list of Five Things You Should Know About Virtual Currencies. The article aims to simplify what virtual currencies are all about and why people should think about the risks involved before choosing to invest in it. It defines virtual currencies as a digital form of money that can be used for purchasing goods and services typically online and can also be exchanged for other currencies such as the U. S. dollar. Risks of Virtual Currencies. The article also warned that these types of....
A new report from the SWIFT Institute has found that fiat currencies are more likely to crowd out digital currencies such as bitcoin. The paper, Virtual Currencies: Media of Exchange or Speculative Asset? [PDF] analyses the dynamic relationship between virtual currencies, such as bitcoin, and fiat currencies. The research looked at whether or not the design and the size of virtual currencies could pose an immediate risk to monetary, financial or economic stability. The paper found that fiat currencies are more likely to crowd out virtual currencies and that the design and size of virtual....