Month: June 2021

Bitcoin Must Be Accepted By World Bank, According To Charter

The World Bank has poured cold water on El Salvador’s adoption of bitcoin as legal tender, saying it cannot support the move due to “environmental and transparency” concerns.

But the developmental body may soon be forced to accept bitcoin payments from countries that have embraced the cryptocurrency.

Its founding document, the 1944 Articles of Agreement, outlines the procedures and principles by which the World Bank pledges to engage with sovereign governments. A central theme in the document is its commitment to accept payments from member states in local currencies.

Bitcoin

Section 12 of Article V defines acceptable “forms of holdings of currency” as follows:

  • The Bank shall accept from any member, in place of any part of the member’s currency, paid in to the Bank under Article II, Section 7 (i), or to meet amortization payments on loans made with such currency, and not needed by the Bank in its operations, notes or similar obligations issued by the Government of the member or the depository designated by such member, which shall be non-negotiable, non-interest-bearing and payable at their par value on demand by credit to the account of the Bank in the designated depository.

That’s not a foregone conclusion. Reuters asked them about that yesterday and got a decidedly arsey response. “We are committed to helping El Salvador in numerous ways, including for currency transparency and regulatory processes,” a spokesperson waffled. “While the government did approach us for assistance on bitcoin, this is not something the World Bank can support given the environmental and transparency shortcomings.”

The World Bank, by the way, has invested more than $12bn in fossil fuel projects over the past six years, representing at least 6% of its total investment portfolio. It also accepts gold payments from members, despite gold mines emitting on average 0.8 tonnes of CO2 for every ounce of gold produced.

Still, they’re worried about bitcoin’s carbon footprint. So they’ll be happy to know that, by some estimates, 76% of bitcoin miners are already using renewable energy.

Oh yes, and every transaction ever made on the bitcoin network is recorded on an immutable digital ledger that is fully visible to all market participants. That makes it, by far, the most transparent monetary network that has ever existed. No funny business allowed.

Blockinvest Ventures is hereby to help you understand more regarding the investment industry with conscientious advice. We hope that you can feel the article was helpful and don’t forget to subscribe our website for further news!

Source: Forbes

Thinking Of Getting Into Cryptocurrency? The Top 5 Crypto Tax Mistakes To Avoid

Depending on the month, day, hour, or minute you check the news, you might think investing in cryptocurrency or being paid in cryptocurrency is the greatest idea since sliced bread or the worst possible use of your money, ever. Whether you agree with Warren Buffett that cryptocurrency has “no value” or think Bitcoin’s value will rise to $300,000 in 2022, there’s one thing about cryptocurrency that isn’t up for debate: getting it right on tax returns has never been more critical.

The IRS is aggressively working to identify and root out United States taxpayers who are required to report cryptocurrency transactions, but either incorrectly report or omit cryptocurrency entirely from their tax returns. Understanding the tax implications of buying, selling, exchanging, or earning cryptocurrency has never been more important. We’ve identified ten common mistakes made when reporting (or not reporting) cryptocurrency transactions to the Internal Revenue Service, and will detail how to avoid each mistake in its own article. Finally, we will end the Top 10 Crypto Tax Mistakes To Avoid series with suggestions for the IRS on how to better reach out to taxpayers who are making Crypto Tax Mistakes, and how to bring those taxpayers back into compliance. As a tax litigator, it is my job to Monday-Morning Quarterback how taxpayers and their tax professionals did the first time around. This series aims to help folks get it right from the beginning, or identify possible mistakes that may need to be addressed.

Number 5: Failure to Prepare and Maintain Adequate (or any!) Records Reflecting Crypto Transactions

As with any taxable sale or exchange of property, taxpayers must be able to establish basis in an asset, including cryptocurrency, in order to calculate the gain or loss and resulting tax due. Taxpayers who don’t keep good records may find themselves paying tax on the sale of crypto as if they had no basis at all in the asset. Taxpayers should resist the urge to be lulled into laziness and assume all records will be available electronically come tax time.

Cryptocurrency

Number 4: Failure to Properly Calculate Cryptocurrency Gains and Losses

Did you lose money on cryptocurrency? Losses can and should be reported to the IRS just like gains, and losses may completely offset any tax consequences of gains. But if they do, taxpayers still need to report the transactions. Cryptocurrency investors are not uniquely required to only report and pay taxes on gains, and should include losses and gains when calculating tax due.

Number 3: Using Like-kind Exchanges to Report Crypto

In all fairness, this isn’t really something that I have seen any of my clients do. But because crypto held as investment is required to be reported as property, it makes sense that crypto exchanges for property, like a Tesla or exchanging Bitcoin for Ethereum should qualify for a like-kind exchange under section 1031 of the Internal Revenue Code. Unfortunately, it doesn’t.

Number 2Failure to Take Proper Steps to Pass on Your Cryptocurrency in the Event of Your Death or Disability

Do your loved ones know how to access your cryptocurrency accounts? If you die or become disabled, the value of your cryptocurrency may well be included in your taxable estate, even if your loved ones can’t actually access or unlock the value of that asset. We will explore best practices for how to ensure your loved ones are not left cleaning up your crypto mess without any access to the value of the asset.

Number 1: Failure to Report Cryptocurrency at All

By far the worst error – whether intentional or unintentional – taxpayers make when it comes to taxes and cryptocurrency is failure to report crypto transactions at all. Carolyn Schenk, the National Fraud Counsel & Assistance Division Counsel for IRS Office of Chief Counsel put it this way when addressing crypto investors who are not reporting income, “We see you.”

Blockinvest Ventures is hereby to help you understand more regarding the investment industry with conscientious advice. We hope that you can feel the article was helpful and don’t forget to subscribe our website for further news!

Source: Forbes

Rural America Readies For Decarbonization And Grid Modernization

A bipartisan infrastructure deal is possible by Memorial Day. But if the negotiations collapse, Senate Democrats will pass their own slimmed-down budget bill through the so-called reconciliation process. But some Republicans are eager to reach a compromise — one that would invest heavily in rural America.

The infrastructure measure is intended to modernize the country’s backbone and to achieve decarbonization. That has strong international appeal and positions the United States to lead the charge against climate change. But at face value, it might “turn off” rural voters who are more focused on job security and energy costs than they are on cooperative agreements. 

President Biden, though, promises to rejuvenate hard-hit regions. Contemplate Appalachia: federal funds would go to reclaiming abandoned coal mines and capping old oil and gas wells. The monies would also pay for and train workers to run wind and solar projects, build electric vehicle charging stations, and create energy-efficient homes and businesses. A multi-billion investment in that region would be expected to create thousands of new jobs. 

Decarbonization

“All communities can participate in this transition,” says Karen Wayland, president of the Gridwise Alliance during a symposium sponsored by the United States Energy Association and where this writer was a panelist. “It has incredible support from the public and a slight increase in corporate taxes is popular. The size of the package is in question — not whether it gets done. This transition is happening anyway. The infrastructure bill will accelerate it.”

President Biden’s infrastructure plan would cost $2.25 trillion over eight years. Senate Republicans have said that they will go as high as $800 billion over five years. But does the economy need a massive infusion of federal spending to prep the grid and to get on an unyielding track to decarbonization? Today, for example, 20% of all energy used in homes and industry is electric, says the Electric Power Research Institute, EPRI. That that number could reach as high as 60% in 2050.

Dr. Wayland says that such a transformation makes grid modernization imperative. Not only must the wires be able to carry more green energy, but they must also be able to detect outages before they occur — and to redirect traffic. The network must also facilitate two-way communications between utilities and customers to save energy. And cars will be using less gasoline and more electricity to fuel up. Electric vehicles and onsite generators, meanwhile, must be able to feed electricity onto the system to meet peak demand. What about energy cost? 

“We see electricity as a more efficient source of energy,” says Robert Chapman, a senior vice president for EPRI, at the symposium. “You can’t decarbonize and add in reliability without cost going up. But it is displacing other less efficient and more expensive fuels. An economy-wide transition will be affordable.” 

The trend toward decarbonization is irreversible. President Biden’s plan wants to accelerate this movement by beefing up the country’s backbone and modernizing the nation’s grid to handle more green energy and electric vehicles. While that is a threat to older industries, it is also a lucrative opportunity — especially for those regions that feel forgotten.

Blockinvest Ventures is hereby to help you understand more regarding the investment industry with conscientious advice. We hope that you can feel the article was helpful and don’t forget to subscribe our website for further news!

Sources: Forbes

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