Virtual currency can be characterized as a type of unregulated, digital money that is issued and sometimes controlled by its developers. It’s used and accepted among the members of a specific virtual community. The most famous virtual currency is bitcoin.
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Bitcoin is a public-ledger distributed virtual currency, which means anyone can see everyone else’s bitcoin wallet balance. However, if a new bitcoin wallet is created every few seconds, it won’t be easy to see anyone’s real balance. Moreover, a wallet address is a code.
It’s important for ISOs and merchant level salespeople (MLSs) learn about virtual currency and educate their merchant customers. If you’re interested in a bitcoin merchant account, consider turning to eMerchantbroker.com, the #1 high risk payment processor in the US that boasts an A+ rating with the BBB. EMB offers exceptional merchant account services and the lowest possible rates in the industry. eMerchantbroker.com has an A rating with Card Payment Options and is named one of Inc. 500’s Fastest Growing Companies of 2016.
Important to Know
The IRS (Internal Revenue Service) considers bitcoin like property. Owners of bitcoin are required to report gains or losses to the IRS. By the way, from thousands of people owning bitcoin in the US, perhaps only 802 have actually reported ownership of that asset to the IRS.
Establishing a national virtual currency business is like establishing a national money transmitter business. A high level of technical sophistication will be required.
Conventional processing of credit and debit cards is the basis of US retail. Processing of US dollars from credit and debit cards can’t be brought to its end soon. Real currency plays such an immense role for banks, regulators, and the entire economy. The same can’t be said about virtual currency. The shift from cards to virtual currency is associated with macroeconomics issues and the ability of nations to control their economies.
The US Commodity Futures Trading Commission has approved LedgerX LLC, a cryptocurrency trading platform operator, as a federally-regulated exchange and clearing house for derivatives contracts settling in digital currencies. Ledgerx is going to start trading bitcoin options in the fall and ether options a few months after that.
According to Bloomberg, bitcoin has reached so much success that its operation needs upgrading. The problem is that there are opposing views on how this can be done and there is no all-powerful administrative body to figure out which method to implement.