Should the Efforts Win Facebook Cryptocurrency Become Most Mainstream

Steven Anderson By Steven Anderson May 3, 2019 Off

The Facebook, social media giant is working on launching their payments platform.  Financial firms and merchants will be assisting Facebook with launching the platform.

Should the effort meet its ends, will turn the situation upside down for the traditional systems that integrate the world of e-commerce with their end customers.  The cryptocurrency from Facebook might become the most mainstream to date.

More than 80 well-known companies are currently lobbying to influence the cryptocurrency industry.  During the first quarter, they have spent more than $42 million in promoting the industry.

Taxation is one of the biggest concerns studied in the process. The IRS guidelines at present do not provide a reference to any newer developments in the cryptocurrency industry.  Outstanding issues are related to how to deal with cryptocurrency forks.  There is no clear regulatory status defined for cryptocurrencies. It is not clear whether cryptocurrencies should be considered to be a futures contract, security or currency.

Marie Wieck, General Manager of IBM Blockchain, stated that they had not spent a lot in Fintech lobbying, but were involved in pro-blockchain initiatives in Arkansas.

Wieck stated thus:  “We’ve been involved in blockchain for Arkansas, which is an initiative working with the universities and the state government on how to encourage and improve usage. The bill was on the accordance of smart contracts as a supported means of collaboration.”

Association of National Advertisers, Alibaba, Freedom Works, Intuit, Mastercard, IBM, the Entertainment Software Association and U.S. Public Interest Research Group are a few to name companies involved in Fintech lobbying.

South Korea has authorized nearly 9 Fintech blockchain firms to function as a regulatory sandbox in the country.  These firms will be providing for innovative services that make use of blockchain and fifth generation communication services.  The regulatory sandbox will include new financial services for a trial period of nearly four years without statutory limits.

The Woori Bank will provide cryptocurrency to cash exchange services with which people will be able to withdraw cash at the restaurants and parking lots near the airport. Of all the financial services included, it is not clear as to which of these companies will be using the blockchain to offer their services. Over 100 companies have applied for this program ever since it has been launched.

Recent news doing the rounds is that Samsung, the electronics giant might end up developing a public-private blockchain complete and issuing its cryptocurrency.

It is Giants venturing into the industry with strategic plans in a powerful way.