Or you may have followed recent news about the bankruptcy of FTX, a major cryptocurrency exchange. New York prosecutors and the U.S. Securities and Exchange Commission are examining the company's collapse, which triggered a new wave of financial tension in the cryptocurrency industry, reports The Wall Street Journal. Despite the collapse of FTX, cryptocurrencies continue to have a growing presence in the mainstream economy, said Quentin Vassas, vice president of payroll and benefits at Remote, a company that recently introduced cryptonomine.
Since July, Vassas said, all workers employed in the U.S. UU. who use the Remote platform, including Remote's own employees, have the option to have part of their salary paid in the cryptocurrency of their choice thanks to a partnership with Coinbase. The benefits of cryptocurrency payment solutions are becoming more widely known, said Tim Savage, certified public accountant, tax services partner at Weaver, a national accounting and advisory firm based in Dallas.
For example, he noted that compared to the average fees of credit card processors, which can range from 1.5 to 3.0 percent, cryptocurrency payments offer reduced transaction fees, often 1 percent or less, depending on the service provider and the blockchain networks that facilitate payments. In addition, he said, cryptocurrency payments are final transactions that are often finalized in a minute or less. As a result, he added, companies no longer have to wait until several weeks for payments to settle or be refunded. Savage cites a recent Deloitte study, according to which 85 percent of senior executives in retail organizations expect digital currency payments to be widespread among customers and suppliers in their respective sectors within five years or less.
In addition, he said that 75 percent indicated that they planned to accept payments with cryptocurrency or stablecoins (a type of cryptocurrency whose value is linked to an asset such as the US dollar or gold) in the next 24 months. Laura Fuentes, Infinity Dish operator in Boca Raton, Florida. While his company has looked into it, he said that we just weren't comfortable with the whole process. One of the drawbacks, Fuentes said, is the volatility of the value of cryptocurrencies.
The value of cryptocurrencies is constantly changing, so calculating how much to pay someone was a real headache, since in the morning it could be 2.5 ETH and in the afternoon it could be 4 ETH, he said, adding that it would really complicate our fiscal situation in a way we weren't prepared for. Whether or not you're considering cryptocurrency options as part of your compensation practices, it's important to be aware of what's going on in this area. The conversion would also require the use of a money transfer provider if these providers are partners of cryptocurrency issuers and platforms. By analyzing these sectors, policy makers can identify not only consumer protection and determine if they are working, but also the challenges that regulators have faced in ensuring that marginalized communities are not exploited and how to address those issues early on.
The Treasury Department released two reports in response to President Joe Biden's executive order (EO) on ensuring the responsible development of digital assets, which requires government agencies to develop policy frameworks and recommendations that promote six priorities, one of which is financial inclusion. Employees, he said, should also hire a tax advisor familiar with cryptocurrencies to ensure that they correctly declare them to the IRS or, alternatively, familiarize themselves with the IRS guidelines on this topic, the fact that others are doing it doesn't mean they are doing it correctly. However, what investors with ESG objectives are most concerned about the governance issues of cryptocurrencies, whose decentralized frameworks and anonymity make them especially attractive for illegal activities, money laundering and the evasion of sanctions.
