April 21, 2016
By Austin Mercer
Blockchain technology, (click here) popularized by the virtual currency, Bitcoin, is being hailed by many as a ground-breaking innovation that will increase efficiencies in the global economy. Its applications could be far reaching, but presently its impact is most evident in the banking sector. Banks view blockchain as a tool to decrease transaction costs, processing times, and fraud. To illustrate the fervor behind blockchain, in September 2015, a consortium of nine banks established R3, a company focused on the research and development of blockchain. Within three months, the number of banks involved with R3 ballooned to 43.
Although, as discussed below, blockchain is praised for its self-regulatory mechanisms, issues with Bitcoin theft, market manipulation, and its use in illegal transactions have forced governments around the world to consider oversight. U.S. federal and state regulatory boards have expressed interest in policing the use of blockchains in financial transactions, and some have already taken action. Most of the current and proposed regulation deals with virtual currency, but these regulations provide insight into how governments will handle all types of blockchain activity....
Increased efficiency translates into lower taxation of "Financial Transaction Tax." The USA has no real alternative, it needs additional tax income. The Financial Transaction Tax has been discussed for some time, however, the Republicans stands in it's way.
CRONIES before citizens.
By Austin Mercer
Blockchain technology, (click here) popularized by the virtual currency, Bitcoin, is being hailed by many as a ground-breaking innovation that will increase efficiencies in the global economy. Its applications could be far reaching, but presently its impact is most evident in the banking sector. Banks view blockchain as a tool to decrease transaction costs, processing times, and fraud. To illustrate the fervor behind blockchain, in September 2015, a consortium of nine banks established R3, a company focused on the research and development of blockchain. Within three months, the number of banks involved with R3 ballooned to 43.
Although, as discussed below, blockchain is praised for its self-regulatory mechanisms, issues with Bitcoin theft, market manipulation, and its use in illegal transactions have forced governments around the world to consider oversight. U.S. federal and state regulatory boards have expressed interest in policing the use of blockchains in financial transactions, and some have already taken action. Most of the current and proposed regulation deals with virtual currency, but these regulations provide insight into how governments will handle all types of blockchain activity....
Increased efficiency translates into lower taxation of "Financial Transaction Tax." The USA has no real alternative, it needs additional tax income. The Financial Transaction Tax has been discussed for some time, however, the Republicans stands in it's way.
CRONIES before citizens.
