In the interest of education, I will answer your post AFC as I feel education and awareness are the biggest roadblocks to cryptocurrency adoption right now.
The mitten sellers dilemma is the easiest problem to solve of the scenarios listed. We'll choose Kucoin exchange as it is nonKYC. Mitten seller types in her Tanzig's Mittens email and Tanzig123 password and Boom! she is now a member of a global banking system. She can now go on Etsy and sell her mittens and accept any cryptocurrency listed on Kucoin.
As to your second comment, I admittedly know very little about those smaller money remittance businesses save for seeing terminals in little grocery and convenience stores. But are you suggesting 4 or 5% fees are acceptable? While that's better than Western Union and Moneygram fees, cryptocurrencies are offering fees in the fractions of a %. And all from the convenience of a computer or cell phone.
It's a fraction of a % if the mitten seller leaves it in crypto but you can't buy food in Tibet with crypto, so she has to pay two fees, the fee to move the crypto around and then the fee to change it into Yuan, and that will add up to far far more than 4 or 5% according to every post here about trying to change crypto into cash, on top of this she has to negotiate the utter shark tank that is crypto right now where half the exchanges appear to be just scams, and then she has to worry about the value of her mitten dropping 30% overnight while her purchaser has to worry about losing 30% if it goes up.
or she can just use paypal, 4% approx fee, worldwide reach and little risk in comparison
by the by as far as I can tell Kucoin charges about 20 bucks for any withdrawal, which may be a deal if you plan on only taking out several thousand a few times a year but makes it an absurd price for day to day 'banking'
I will attempt to answer this Pete as this is the advantage of crypto's that gets me most excited.
" The unbanked population internationally
As of 2017, approximately 1.7 billion people remain unbanked in emerging economies. This number has decreased from 2.5 billion people in 2014. "
Imagine the undocumented worker in California that has no id to get a bank account and is forced to spend $20 to send $80 home to Guatemala with Western Union.
Imagine the Philipino nanny living in Canada that distrusts banks because of corruption back home and also spends $20 to send $80 home to the Philipines.
Imagine the renter in Honduras that needs to pay their utility bill, lost their bank account so has to spend a few hours going in person to the electric company office to pay in cash.
Imagine their neighbor, who never had a bank account so could not qualify for an electric utility account so has to use candles.
Imagine the family in Kenya that wants to start a safari tourism business but has no bank account and can't apply for a loan to buy a tour bus.
Imagine the shoe maker in Nigeria who has no bank account. He has access to local leather, stitching and soles but no cheap laces. He could buy them cheaply in bulk from China but has no way of sending funds so instead has to buy expensive individual lace packs at his local store.
Imagine the lady in Tibet who makes the most wonderful and warm mittens but has no bank account. She could sell them on Ebay and Etsy for a fortune but can not get an account so is limited to selling them in her small village.
We are not there yet with cryptocurrencies, but it has the potential to bring banking to many people in this world and in turn, raise their standard of living.
1. No it does not have that potential. Crypto doesn't scale that way, and the technology is fundamentally too slow and expensive to use for people like you describe.
It's also not a currency, you can't use it for banking, it's just too volatile for that. The number of people actually buying anything in crypto is miniscule and on the decline.
2. No one who has money in crypto has any incentive to make cryptos a viable currency, especially for the poor.
If you're an investor you want volatility, you want the value to go up rapidly, which is antithetical to it being usable as a currency. If you're in crypto management business, you want it to be as expensive as possible to own and handle.
There's no one even seriously working towards creating banking for the unbanked through crypto. It's not a real thing.
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The problem is, the more akin to everyday banking that crypto is, the more it can be regulated. So if a bunch of people start using crypto.com accounts and use their debit cards for everyday spending, why couldn't Canadian securities regulators require that the company register and be subject to regulations? I mean, that already exists with some exchanges (Weathsimple, Bitbuy, etc.), so it wouldn't be all that difficult to require it for all of them. And with that, comes the downsides of a normal bank account regarding regulatory oversight.
Sure, if you are savvy enough to take all the correct steps and don't use those kinds of companies for your transactions then you can basically be immune from government oversight, but then you're back out of the realm of simple, everyday banking for the average person. I mean, you can also largely do the same with offshore accounts, cash, etc. with fiat money, but barely anyone does that because in day to day life, there's no benefit for the average person.
I think crypto can potentially solve some use-case scenarios (i.e. sending money internationally cheaply, large purchases across different currencies without getting screwed by awful exchange rates, etc.), but then if that becomes something that's used commonly by the average person, then traditional financial institutions will likely adjust as well. Look at the United States, they were still swiping credit cards until a few years ago when mobile payment systems basically forced them into the modern age almost overnight.
Already done.
Crypto.com is registered and insured in Canada. Were one of the first Crypto companies to do so.
Other than that I agree, and I welcome the regulation & oversight. The Canadian government is responsible for protecting Canadian citizens via proper oversight of financial companies. Plus it forces companies like Crypto.com Wealthsimple, Coinbase and others to operate within the law, so I as a Canadian know I can trust their services.
Crypto.com is registered and insured in Canada. Were one of the first Crypto companies to do so.
Other than that I agree, and I welcome the regulation & oversight. The Canadian government is responsible for protecting Canadian citizens via proper oversight of financial companies. Plus it forces companies like Crypto.com Wealthsimple, Coinbase and others to operate within the law, so I as a Canadian know I can trust their services.
Isn't Crypto.com registered only as a Money Service Business (similar to a currency exchange) in Canada? I could be wrong on that, but I don't think they're registered or regulated like a trading platform, securities dealer, or a bank would be as a Financial Entity (whereas Wealthsimple is). There's a pretty big difference in terms of regulation between the two, and I imagine if they act like a bank they're going to be treated like one, which will likely involve significantly more oversight than they have right now.
They are not acting like a bank yet in Canada. Or anywhere else. Not sure on what the specific legislation is on that. They just happen to have the ability to accept bank deposits in some jurisdictions. Or e-transfer in Canada.
Depending on how you use their services, it can act like a bank but perhaps not wise to hold your entire savings with them if they are not properly insured.
They are not acting like a bank yet in Canada. Or anywhere else. Not sure on what the specific legislation is on that. They just happen to have the ability to accept bank deposits in some jurisdictions. Or e-transfer in Canada.
Depending on how you use their services, it can act like a bank but perhaps not wise to hold your entire savings with them if they are not properly insured.
are their mortgage rates competative?
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They are not acting like a bank yet in Canada. Or anywhere else. Not sure on what the specific legislation is on that. They just happen to have the ability to accept bank deposits in some jurisdictions. Or e-transfer in Canada.
Depending on how you use their services, it can act like a bank but perhaps not wise to hold your entire savings with them if they are not properly insured.
You can etransfer me your money and I'll act like your bank.
I insist that I promise to give it back to you when you want it.
Our fees will always be competitive and our service team is here to assist you 24/7.
Cause we're nice like that.
Oh, and about that insurance...I ensure you we're insured
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by the by as far as I can tell Kucoin charges about 20 bucks for any withdrawal, which may be a deal if you plan on only taking out several thousand a few times a year but makes it an absurd price for day to day 'banking'
Anyone liquidating to fiat in Canada should be using Calgary-based PayTrie: https://cutt.ly/0PJ4S3R (shameless referral link).
.6% liquidation fee (minimum $5) is the most absurdly small fee I've seen, direct deposit into your bank. Works with Eth Mainnet, BSC and Polygon.
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Settle down there, Temple Grandin.
Last edited by PsYcNeT; 02-23-2022 at 08:27 PM.
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bitcoin is tanking, under 35K US, anything to do with Russia?
It started 2 hours ago, so I'd say so, and not just BTC, all the major coins have shed 8% (from yesterday's high) last I checked... Nope looks like it's 10% now...
bitcoin is tanking, under 35K US, anything to do with Russia?
My best guess would be when you actually think the poop is about to hit the fan you find the lack of anything you physically own as a store of value might seem a bit illusury
This is hilarious they prelabeled the evidence before they got there, with a bag labelled "burner phones".
Also, the US government go access to their cloud storage, a good lesson on using US-based cloud assets to store your private information. US privacy laws are a lot easier to get through than Canadian and European laws, so if you are doing anything grey- or black-hat keep the evidence out of the US.
BTC up 12% in the last two hours after crashing like crazy the last 48.
Weird day.
I imagine if Russia actually gets kicked out of SWIFT we'll see a major bump in all crypto as that will be the only real way to move large amounts of money in or out of that country
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