The U. S. Internal Revenue Service (IRS) is contemplating the arrival of a box on the first page of the 2020 tax returns, in particular by asking participants if they sold, received, sent, exchanged, or acquired a monetary interest in a virtual currency each year. you will have to respond unequivocally by checking the box “Yes” or “No”.
The consultation, which for the first time gave the impression in the 2019 declaration, but in a segment that not all taxpayers want to respond to, now moves to a very vital place, from the beginning, below the call and address fields. The consultation has a transparent purpose: in addition to investigating the scope of cryptocurrency use between, it is intended to be less difficult for the IRS to win lawsuits against taxpayers who have not reported their assets. cryptocurrency, which will no longer be to assert, that they were not aware of the legal responsibility to pay taxes on them. In 2009, the IRS used this same strategy to curb deposits into overseas accounts, resulting in more than $12 billion in regularization since then.
IRS movements coincide with other projects in other parts of the world aimed at making cryptocurrencies increasingly official: China’s strategy, ready before the next launch of its official cryptocurrency, is not only based on exploiting the profits of electronic currencies, but also on greater Beijing already running on an ambitious public transaction infrastructure (BSN) founded on blockchain , which is built into six public channels: Tezos, NEO, Nervos, EOS, IRISnet and Ethereum.
Last week, the European Union presented a regulatory framework for cryptographic and solid portion assets. In other parts of the world, such as Africa, the use of cryptocurrencies such as bitcoin is developing significantly as it protects users from cash loss from currency fluctuations. against the dollar, which has led to monthly cryptocurrency transfers to and from Africa below $10,000, across Americans and small businesses, expanding by more than 55% in a year to $316 million last June, while the number of transactions increased through 50% to approximately 600,000.
There are indications that cryptocurrencies are entering a new phase: while many cryptocurrencies remain in decline due to instability and schemes to manipulate them, others, especially some solid currencies like Tether, are increasingly adjusting, not unusual and widely used to evade capital movements, while Facebook’s ambitious BalanceArray was rejected by regulators due to the company’s poor privacy history.
Bitcoin is particularly interesting: this week, we are informed that 88% of all bitcoins that will one day have been mined, a milestone that may involve a slow stabilization of its long-term price: since the general source of bitcoins is limited and predefined in the Bitcoin protocol to 21 million, the praise given to mining decreases over time (Bitcoin praise is divided into 2 each and every 210000 blocksArray over each and every 4 years), and that some bitcoins in flow are most likely to be lost or unable to be used due to errors such as lost passwords, incorrect exit addresses or errors in the output scripts.
The optimism of bitcoin whales like the Winklevoss brothers, who claim that the price of a single bitcoin will exceed one million dollars, contradicts more conservative prospects like that of oracle Omaha, Warren Buffett, who claims that cryptocurrencies are worthless, or the Nobel Prize in Economics, Joseph Stiglitz, who believes we deserve to close them all, which would be absolutely for the decentralized control of many of them. If anything is true, as the MIT Tech Review said in December 2019, cryptocurrencies will soon make us uncomfortable, and this will actually, as my esteemed colleague Mauro Guillén said in his ebook “2030: How Today’s Biggest Trends Will will impact and reshape the long run of everything,” we have slightly touched the surface of its full potential.
In the meantime, if you have cryptocurrency assets, think about what to do when your government asks you to report them. Ignoring their lifestyles or not imposing taxes on them tells us what will follow: cryptocurrencies came to stay.
Professor of innovation at EI Business School since 1990, and now, school of piracy as senior for virtual transformation at IE BSc University
Professor of innovation at the EI Business School since 1990, and now, school of piracy as senior for virtual transformation at IE University BSc (Universidade de Santiago de Compostela), MBA (Instituto de Empresa) and Ph. D. Management Information Systems (UCLA) ).