Week 44 News Recap
MoneyGram Will Start Using Ripple’s XRP: Potential Increase in Volumes for XRP
In one of the most recent interviews, Brad Garlinghouse, CEO of Ripple, stated that transactions between XRP and the Mexican peso increased by 50% during the latest turn of trends for XRP in the market. Garlinghouse also added that MoneyGram will start using XRP, confirming rumors that previously posed as a potential price booster for XRP. Ripple’s CEO also added that MoneyGram will be responsible for additional increases in XRP volumes in Mexico, while all transactions can be transparently checked on Ripple’s public ledger. During the most recent interview, Garlinghouse explained that MoneyGram will be using XRP as a bridge to send US dollars to Mexico, that way increasing XRP volumes. Combined with other XRP clients, this case should notably raise the volumes of XRP. Garlinghouse also explained that MoneyGram and similar clients are using On-Demand Liquidity, already having a product created to move capital, which is how users doesn’t have to use prefunding. Ripple’s CEO also stated that the volumes of XRP are not speculative “such as Bitcoin”, but are instead a product of utility. Garlinghouse also spoke on the matter of crypto adoption in his interview for FintechBeat podcast, stating that he believes that many years will pass before crypto is used in a mainstream manner.
Craig Wright Breaks the Bitcoin Agreement: Wright Claims He Has no Funds to Settle Kleiman Case
Craig Wright, also known to the public as “Fake Satoshi” or “Faketoshi”, claims that he doesn’t have funds to make a settlement in the Kleiman case. Kleiman estate’s Ira Kleiman took over the authority over his deceased brother’s estate, charging Wright for alleged manipulation of emails, business documents, and other forms of data and correspondence between the two parties with a goal of deceiving and defrauding Kleiman estate. Craig Wright retreated from his settlement agreement according to the court documents concluded with October 30th. The settlement demanded Wright to forfeit half of his Bitcoin units mined before 2014, including forfeiting half of his intellectual property as well. Since Wright pulled out from the previously settled agreement, the lawsuit is active again.
Previously, Wright failed to disclose all information on his Bitcoin addresses, supposedly holding 1.1 million BTC. During the trial, Wright claimed that some of his BTC assets are inaccessible due to the sudden death of his ex-partner, David Kleiman. The trial proceeds, expected to take place on March 30th, 2020.
The UK Tax Authorities Update Cryptocurrency Taxation: Crypto is Not Money
Her Majesty’s Revenue and Customs – HMRC – updated guidelines for taxation of cryptocurrency regarding individual and business utilization of digital assets. The latest update in the guidelines on taxing cryptocurrency ruled that crypto is not money. HMRC manages taxes and other financial policies in the United Kingdom, while the service decided that cryptocurrency won’t be taxed as money or currency. Security tokens and utility tokens are yet to be defined in terms of taxation guidelines, as stated by the regulatory body of the UK. Taxations are different for various types of token and cryptocurrency exchanges, which means that corporations using cryptocurrency will need to cover corporation taxes, income taxes, stamp taxes, taxes on capital gains, as well as National Insurance tax contributions.
The tax authority also stated that the sector of cryptocurrency is growing fast, which is why the authorities will look closely into different types of cryptocurrency utilization in order to be able to apply matching taxation models. By far, any corporation buying or selling crypto, exchanging, mining, or selling products in exchange for cryptocurrency will have to comply to the latest updates within crypto taxation guidelines. In addition, HMRC is looking to collect users’ data from UK exchange platforms dealing with crypto. It is also important to note that HMRC preciously recognized using, selling and buying crypto as gambling.
SEC’s Lawsuit Still Active, Telegram Releases Test Crypto Wallet
Users of Telegram’s new cryptocurrency project, “Gram”, now have a chance to download and test crypto wallet developed by Telegram and released for 64bit Linux, MacOS and Windows. The application that can be downloaded from Telegram’s official web page, and tested by users, states that users can now gain full control over their funds without the need for banks or middlemen. Users can also access TON testnet in order to request keys to the wallet containing 24 seed words. Despite the earlier case of the Securities and Exchange Commission’s lawsuit against Telegram and their first cryptocurrency project, the company behind the popular messaging app is still working on developing TON and their native coin “Gram”.
This can be easily concluded by the latest release of TON test crypto wallet. Telegram crypto users can also test transactions with grams by using special Telegram bot that allows transfer of tokens under only a minute of transaction time. However, in case of increased traffic on the testnet platform, some transactions may take longer to complete. Although Telegram is still working on their ambitious project, SEC is still pursuing a lawsuit against the company on the charges of illegal token issuance. That is how Telegram decided to postpone the official launch of TON network for April 31st, 2020.
Ethereum Announces Casper Proof of Stake as Live and Safe
Ethereum announced that Casper Proof of Stake protocol has been released, confirming the status of the project as live and safe. CasperLabs also released the documentation regarding research on the project, announcing the “Highway”. The first version of the protocol was released back in May 2019, while both, Ethereum’s protocol and Highway are dubbed Casper.
CasperLabs announced the latest implementation of the protocol on San Francisco Blockchain Week, stating that they are hoping that Highway will inspire innovation and bring benefit to all through an open-source license the public has access to. Additionally, CasperLabs reported 14.5 million dollars raised in the funding round A, stating in the press release that live and safe features present in Highway are fully provable. In the meanwhile, Ethereum development teams are working on the next biggest update, Constantinople.