The Australian banking royal commission was established in December 2017. Commission intended to examine the practices of financial service providers such as banks and car finance companies. It has been investigating four major banks in Australia, among others. The commission discovered many cases of malpractice.
Many Australians became distrustful since the report went public. In his comment, an economist and Blockchain Innovation Hub’s researcher Brendan Markey-Towler said this is especially problematic in Australia because almost every payment is connected to the bank. The controversy resulted in a rising number of Australians who wanted to find an alternative way to manage their own finances.
Many people seem to be happy with Mr. Crabs solution to hide all their riches under their mattresses. If that’s not really an option for you, consider cryptocurrency, peer-to-peer lending and credit unions.
So what are the options?
Dr. Markey-Towler said that technological advancement offered some alternatives. His only advice was to be smart and careful. Every choice has its advantages and flaws so everyone should choose something that suits them best.
ASIC Moneysmart’s executive Laura Higgins agrees with Markey-Towler. She declared that young people are searching for innovative ways to manage their finances. She also finds refreshing and “inspiring” that young people are looking further than traditional ways when it comes to finances. Some of the alternatives are cryptocurrency, peer-to-peer lending, and credit unions.
Dr. Markey-Tower said he believes that in the not-so-distant future we will be able to pay our usual morning coffee, for example, with a Bitcoin.
He explained that many people mistake the terms of blockchain and cryptocurrency. Cryptocurrency is actually based on the blockchain technology. According to his words, everyone in one network has a certain amount of purchasing power. When you want to transfer that purchasing power, you use that network’s related currency. And blockchain works like a bank record, tracking the amount of everyone’s purchasing power on that network.
Dr. Markey-Tower claimed that the regulations are the only thing slowing down the process of cryptocurrency becoming widely used every day. Laura Higgins agreed and added that the exchange platforms in cryptocurrency business need better regulations. Therefore, the risk is still high but will keep stabilizing as we progress further.
Instead of lending money from the bank, you may lend directly from a peer. Dr. Markey-Town stated that platforms that connect a borrower directly to a lender have recently been in demand. Laura Higgins added that ASIC regulates this matter and mostly requires licenses. Even though it seems the lenders are in favor, Higgins highlighted that this way borrowers may find a lower interest rate.
You should always ensure a few things if you’re having a peer lender for your business. The lender needs to have an Australian Financial Services License so you could be protected by law. Also, always check twice the “small letters in the bottom” and ask about the interest rate. That way you’ll protect yourself from many potential risks, for example, from an exorbitant interest rate.
Higgins suggested that credit unions may be a good choice since they are as safe as banks. Customer-owned banks have different responsibilities than shareholder-owned. Since 2015, there were 4 million clients in 93 customer-owned banks. They included credit unions, building societies and mutual.
There were have been some bad experiences with credit unions due to acquisitions. Clients who exclusively want a customer-owned bank can be disappointed if the small bank merges a couple of times. Then it becomes a big one that they intended to avoid.
In the end, Laura Higgins advised always to check your financial plans now and then. Maybe they don’t suit you any more or there’s a better option somewhere else.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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Blockchain-Focused ETF Arrives on London Stock Exchange
The crypto community is still waiting for the US SEC to approve Bitcoin ETFs, with speculation which application might get approval being one of the hottest topics in 2018. However, come 2019, the US government shutdown dragged on, and the Bitcoin ETF request which had the most potential to see a grant got withdrawn by the very companies that submitted the application.
While the question of BTC ETF remains hanging in the air, blockchain-focused ETFs seem to be a different matter entirely. In a recent announcement by an independent investment managed firm called Invesco, the company has stated that it was about to launch the largest blockchain-focused ETF in the world. They managed to go through with this plan, and the ETFs have reached the London Stock Exchange today, March 11th.
The exchange-traded fund includes a portfolio containing as many as 48 different firms which are bringing exposure to the emerging technology. Among them, there is Taiwan Semiconductor Manufacturing, which is a well-known creator of chips used for crypto mining, as well as the CME Group, which is the first regulated exchange in the US which launched Bitcoin futures. There are many other well-known companies as well, such as Intel, Microsoft, and others.
Chris Mellor, the Invesco’s head of ETF equity product management in Europe, said that blockchain has a huge potential to increase earnings, even though…
Could Jeff Bezos Turn to Bitcoin to Hide Fortune from Wife?
Amazon’s Jeff Bezos has made numerous headlines recently due to his overly-publicized divorce, which shows all signs of being one of the most expensive ones — if not THE most expensive one — in modern history. According to estimates, it might cost him as much as $70 billion, which will make his soon-to-be-ex-wife the richest woman in human history.
However, as the process continues to unfold, many have started wondering if things may have ended up differently for Bezos if he turned to Bitcoin for help.
Bitcoin as a divorce tool?
In the last several years — since Bitcoin and other cryptos hit fame — many have started turning to BTC during their divorce proceedings. In fact, it can even be said that using the largest cryptocurrency in this way has become a new trend. The trend has been gaining so much strength that numerous law companies started including advice on what to do in regards to Bitcoin as part of their websites.
However, while the trend has been picking up in recent years, it is nowhere near as easy as it might seem. For example, if there is even a suspicion of a spouse having undisclosed holdings appears during the divorce process, it might be enough to impact the final decision of the judge. In other words, even if there is a complete lack of evidence, but…
Three Biggest Things To Know Come Cryptocurrency Tax Season
In recent years, digital cash systems known as cryptocurrencies such as Bitcoin and Litecoin have exploded into the public eye. A blend of cash and stocks, their use and value has grown exponentially. In 2017, the IRS decided to focus great effort on taxing them. In theory, this should be as simple as calculating taxes on any other type of property, bond, or other assets. Cryptocurrency, however, presents a unique challenge. The full extent of one person’s crypto activity can stretch across dozens of platforms and take a variety of different forms. This makes it difficult to gather all of this information cohesively, much less begin the seemingly- complicated process of reporting it.
These three tips should help anyone looking to legally report their crypto activity to figure out where to start.
Documentation is key!
There are dozens of different “exchanges” individuals can use to change their cash into crypto. When the flat currency is changed into cryptocurrency at the exchange, you establish your cost basis. This makes this data crucial when you begin the process of reporting. Those who have used a variety of different exchanges should keep detailed records of everywhere that they made trades. Once tax season arrives, most exchanges will allow users to view their entire trading history with that exchange. This information will be necessary later to complete taxes.
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