#crypto tax accountant UK

[mmbaaccountants]

How MMBA Accountants Support Businesses in Cambridge

As a business in Cambridge, you know how challenging it can be to face the complexities of running a successful company in this vibrant city. 

From managing your finances to staying compliant with tax regulations, the demands of business ownership can sometimes feel overwhelming. 

That's where MMBA Cambridge Accountants come in. With our comprehensive range of services and commitment to client success, we are here to support you every step of the way.

Why Us?

Understanding Your Business Needs

Comprehensive Accounting Solutions

Strategic Business Advisory

Tax Planning and Compliance

Technology and Innovation

MMBA Accountants is your go-to partner for all your accounting and financial needs in Cambridge. 

With our comprehensive range of services, experienced team, and commitment to client success, we are confident that we can help you achieve your business goals. 

Contact us today to learn more about how we can support your business!

[mediamonarchy]

https://mediamonarchy.com/wp-content/uploads/2024/05/20240514_MorningMonarchy.mp3 Download MP3 Devastating hits, Bezos’ DARPA grandad and Pokémon maps + this day in history w/U.S. moves Jerusalem Embassy and our song of the day by Macklemore on your #MorningMonarchy for May 14, 2024. Notes/Links: Are BRICS Bucks coming soon? BRICS: Prepare for US Dollar Collapse, IMF Warns https://watcher.guru/news/brics-prepare-for-us-dollar-collapse-imf-warns Australia’s Tax Office Tells Crypto Exchanges to Hand Over Transaction Details of 1.2 Million Accounts: Reuters; The ATO said the data will help identify traders who failed to report their cryptocurrency-related activities. https://www.coindesk.com/policy/2024/05/07/australias-tax-office-tells-crypto-exchanges-to-hand-over-transaction-details-of-12-million-accounts-reuters/ FTX customers get good-bad news as the bankrupt exchange rides the crypto rally https://sherwood.news/snacks/crypto/ftx-customers-get-good-bad-news-as-the-bankrupt-exchange-rides-the-crypto/ GameStop shares surge 70% as meme stock craze returns https://www.cnbc.com/2024/05/14/gamestop-amc-shares-jump-another-40percent-in-premarket-trading-as-meme-stock-craze-returns.html Full list of closures as major bank to shut 36 branches and cut hundreds of jobs https://news.sky.com/story/tsb-to-close-36-branches-and-cut-hundreds-of-jobs-13131574 Video: TSB to close 36 branches with 250 jobs devastatingly hit (Audio) https://www.youtube.com/watch?v=9juP3_SZxAk Laura Loomer Accuses Democrat Politician Who Told Trump to ‘Go Back to Court’ of Illicit Profiteering from Hush Money Trial https://archive.ph/Og5Ny Elon Musk, David Sacks Holds Secret ‘Anti-Biden’ Gathering of Billi https://californiaglobe.com/fr/elon-musk-david-sacks-holds-secret-anti-biden-gathering-of-billionaires/ Melinda French Gates steps down from Gates Foundation, retains $12.5 billion for additional philanthropy; The Gates Foundation has, over three decades, made $77.6 billion in charitable contributions, making it one of the world’s largest donor organizations. https://www.nbcnews.com/business/business-news/melinda-gates-stepping-down-from-gates-foundation-rcna152001 FBI File on Jeff Bezos’ Grandfather, a DARPA Co-Founder, Has Been Destroyed https://vigilantnews.com/post/fbi-file-on-jeff-bezos-grandfather-a-darpa-co-founder-has-been-destroyed/ Video: America’s Book Of Secrets: DARPA’s Secret Mind Control Technology (Audio) https://www.youtube.com/watch?v=wZRkfBsTTt8 EU’s Controversial Digital ID Regulations Set for 2024, Mandating Big Tech Compliance by 2026 https://reclaimthenet.org/eus-controversial-digital-id-mandating-big-tech-compliance-by-2026 UK airports latest: ‘Queues only getting bigger’ https://news.sky.com/story/uk-airports-latest-queues-only-getting-bigger-after-london-and-manchester-confirm-nationwide-border-system-issue-13131330 Marvel Rivals apologises after banning negative reviews https://www.bbc.com/news/articles/cd1wwlvd9yko 28 years later, unopenable door in Super Mario 64’s Cool, Cool Mountain has been opened without hacks https://www.tomshardware.com/video-games/28-years-later-unopenable-door-in-super-mario-64s-cool-cool-mountain-has-been-opened-without-hacks Pokémon Go players are altering public map data to catch rare Pokémon https://arstechnica.com/gaming/2024/05/pokemon-go-players-are-altering-public-map-data-to-catch-rare-pokemon/ Video: Pokemon Go Versus OpenStreetMap (Audio) https://www.youtube.com/watch?v=fLPyXy39Sv0 Image: @Hybrid’s Cover Art – Pokemon Go’s ‘Modern Solutions’ https://mediamonarchy.com/wp-content/uploads/2024/05/20240514_MorningMonarchy.jpg May 2014 – Page 6 – Media Monarchy https://mediamonarchy.com/2014/5/page/6/ Flashback: Americans Will Never Have the ‘Right to Be Forgotten’ (May 14, 2014) https://mediamonarchy.com/americans-will-never-have-right-to-be/ Flashback: Modern Pope Gets Old School On The Devil (May 14, 2014) https://mediamonarchy.com/modern-pope-gets-old-school-on-devi/ Flashback: Frugal US Consumers Make It Tough for F...

[nosisnews]

Crypto and Ai Recap

SEC approved 9 #BitcoinETF

Michigan university to let #AI participate in classes, choose major, earn degree

CoinGecko’s X accounts compromised in phishing attack

Cboe approves listing of spot Bitcoin ETFs ahead of potential SEC approval

UK crypto traders could face £900 fine for tax fraud

#OpenAI launches the GPT Store

#OpenAI launches ChatGPT Team Read more at nosisnews.com

[barnbridges]

ok fun things about finance that nobody asked: if someone tells you "nobody knows what a hedge fund is" what they're really hating to say is that hedge funds are (as far as rich people go) morally neutral rainy day shit. you can't call hedge funds necessarily good (quantum crashing the uk economy in the 90s or that the Mormon church has one) or exclusively terrible (universities have them to protect their material legacy and expensive stuff they have). it's not running a banana republic nor is it investing in hashtag crypto sort of woke.

the nuance that is missing is that it's money that would exist anyway that's in a less regulated bank account that yes you pay taxes on depending on the law.

[georgeshutcheson]

Cryptocurrency Capital Gains Tax UK

New Post has been published on https://www.fastaccountant.co.uk/cryptocurrency-capital-gains-tax-uk/

Cryptocurrency Capital Gains Tax UK

Have you recently ventured into the world of cryptocurrency and are now wondering about cryptocurrency capital gains tax? Well, you’ve come to the right place! Navigating the world of cryptocurrency capital gains tax can be daunting, but understanding your obligations is crucial. If you’re considering selling or giving away your cryptoassets, it’s important to check if you need to pay Capital Gains Tax. This guide  provides clear instructions on when and how to calculate your gains, what records you need to keep, and the allowable costs you can deduct. Whether you’re exchanging tokens, using them for purchases, or giving them as gifts, this article helps you comprehend the tax implications and ensure you’re compliant with UK tax laws.

Check if You Need to Pay Tax When You Dispose of Cryptoassets

When to Check if you Need To Pay Cryptocurrency Capital Gains Tax UK

Understanding when to check if you need to pay tax is crucial. The UK’s HMRC has specific guidelines about when you’ll need to pay Capital Gains Tax (CGT) on your cryptoassets. You should consider the following scenarios:

Selling your tokens: Whether you’re selling Bitcoin, Ethereum, or any other type of cryptoasset, selling them might trigger a tax liability.

Exchanging tokens: Moving from one type of cryptoasset to another, such as trading Bitcoin for Ethereum, can be taxed.

Using tokens for transactions: If you use your crypto to pay for goods or services, this could count as a taxable event.

Gifting tokens: Giving away your tokens to another person is taxable unless it’s a gift to your spouse or civil partner.

Donating tokens: Even if you’re donating crypto to a charity, you might need to pay tax on the donation.

In other words, almost any transaction involving cryptoassets could require you to check the tax implications. Better safe than sorry!

Work Out if You Need to Pay cryptocurrency capital gains tax

You may be free from tax anxiety, but you need to check! To determine if you owe Cryptocurrency Capital Gains Tax, follow these steps:

Calculate Your Gain: The primary way to calculate your gain is by finding the difference between what you paid for an asset and the price you sold it for.

Different Rules for Quick Sales: If you sell tokens within 30 days of acquiring them, the rules differ. You’ll need to calculate your gain using the specific rules for cryptoassets sold within this period.

Taking Market Value into Account: If the asset was free, use the market value when you got it to determine your gain.

Income Tax Considerations: If you’ve already paid Income Tax on the value of the tokens received, you won’t need to pay CGT on that portion. However, you’ll still owe CGT on the profits made after you got them.

Allowable Costs: Certain costs can reduce your taxable gain, such as transaction fees or advertising costs.

You may also offset gains with capital losses. Remember, keeping diligent records is key here.

What Counts as an Allowable Cost

Being meticulous about allowable costs can save you considerable tax. Here’s a rundown of what you can and cannot deduct:

Deductible Costs:

Transaction fees: Any fees paid to process the transaction on the blockchain can be deducted.

Advertising: Costs involved in finding a buyer or seller.

Contract Fees: Any costs related to drafting a contract for the transaction.

Valuation Expenses: Costs incurred to ascertain the value for the transaction.

Non-Deductible Costs:

Income Tax Costs: If you’ve already deducted these against Income Tax.

Pool the Cost of Your Tokens

Pooling helps in organizing and calculating the cost of your tokens more efficiently. Here’s how you can do it:

Create Pools: Each type of token you own should be grouped into its own pool.

Calculate Pooled Cost: The pooled cost will be the sum of the amount you paid for each token type.

Adjust Pool for Transactions: When you buy more tokens, add their cost to the pool. When you sell, deduct a proportionate share from the pool.

Special Pooling Rules:

Hard Forks: If there has been a hard fork, the cost pooling rules change slightly.

Recent Purchases: If you buy tokens on the same day you sell similar tokens, or within 30 days, different rules apply.

How to Report and Pay

Once you’ve figured out that you owe CGT, reporting and paying it is the next important step. There are two ways you can do this:

Self-Assessment Tax Return: You can file this at the end of the tax year.

Real-Time CGT Service: If you want to deal with it immediately, you can use the Capital Gains Tax real-time service.

Key Points:

Non-Residents: The tax amount may vary if you’re not a resident in the UK.

Currency Requirements: All transactions must be reported in pound sterling.

Records You Must Keep

Keeping accurate records is not just good practice; it keeps you on the right side of the law. The following records are essential:

Type of Tokens: Keep track of the nature of tokens involved in each transaction.

Dates: Record the specific dates when you disposed of tokens.

Quantity: Document the number of tokens disposed of and the number left.

Value in Pound Sterling: Every transaction’s value should be converted and recorded in pound sterling.

Financial Records: Bank statements and wallet addresses should be maintained.

Pooled Costs: Ongoing records of your pooled costs, both before and after transactions.

HMRC may ask to see these records during a compliance check, so it’s prudent to be thorough.

Conclusion

So, there you have it—a comprehensive guide to understanding if you need to pay cryptocurrency capital gains tax UK when you dispose of your cryptoassets. Navigating the taxation landscape of cryptocurrencies might seem daunting at first, but breaking it down into smaller, manageable steps can make the process more transparent and less stressful.

Remember, being proactive about your tax obligations can save you a lot of trouble down the road. Whether you’re day trading or holding onto your investments for the long term, understanding these guidelines will help you stay compliant and potentially save on taxes.

Stay informed, keep meticulous records, and don’t hesitate to consult experts if you’re unsure about any part of the process. Happy trading!

[mmbaaccountants]

How MMBA's Nationwide Presence Revolutionizes Accounting Services

Hey there! Have you ever wondered how MMBA Accountants are changing the way accounting services work? Well, let me tell you, it's pretty cool!

You see, MMBA's nationwide presence isn't just about having offices all over the place. It's about being there for you wherever you are.

Need tax advice in East London? Boom, they got you covered.

Looking for accounting firms in Cambridge? Yep, they're there too.

Even if you're in search for accountants in Luton, MMBA's accountant is just a call away!

And it's not just about the locations; it's how they do things differently. They understand that each area is unique, so they tailor their services to fit your needs exactly.

Plus, they use fancy tech stuff to make sure they're always available to help you out. No waiting around for days for an answer. That's pretty awesome, right?

You might be thinking, "How do I know this is true?" Well, let me tell you, MMBA has helped thousands of clients all over the UK.

They've saved people money, helped them plan for the future, and made their lives a whole lot easier.

Plus, they've got the numbers to back it up. With MMBA, you're in good hands.

So, next time you're in need of accounting services, think MMBA. They're not your average accountants. They're the future of accounting, and they're here to help you every step of the way.

[smanthaolson]

In today’s digital age, cryptocurrencies have rocketed into space, changing the financial system. 

We will cover all aspects of Crypto Tax, including reporting profits and losses as well as various types of digital currencies. We will also review the latest developments and changes to cryptocurrency-related tax laws in the UK. 

Lanop is a renowned Accounting and Business consultancy firm with the ability to help individuals and businesses navigate the complexities of cryptocurrency taxation. Our expertise in this area can help you improve your tax strategy and compliance. 

[metamoonshots]

[ad_1] tl;drThe Aussie love-in continues. The BTC Cycles Idea could also be of some use to us.Market SnapMarket WrapThe psychologically necessary 30-handle is sort of close by. That may seemingly make for extra transfers from speculative cash into diamond palms.Curious Cryptos’ Commentary — And the Aussies do it once more!Zodia Custody Australia, a digital asset custodian and subsidiary of Commonplace Chartered, has introduced the launch of a platform offering custodial options for institutional traders. CEO Julian Sawyer explains:“An estimated 26% of Australians maintain digital property, totalling the equal of $21.6 billion at the moment held by way of cryptocurrency exchanges and custodial options. Accountable institutional adoption is vital to making sure this rising business is secure and safe for all. Establishments want bank-grade infrastructure to responsibly take part.”This initiative is in collaboration with NAB, Australia’s largest financial institution.This information follows onerous on the heels of the announcement of a brand new proposed regulatory construction in Australia for centralised cryptocurrency exchanges and digital custodians — see yesterday’s CCC for extra particulars.There are two key take-aways.The primary is that a dedication to maneuver in direction of a regulatory atmosphere that's conducive to crypto enterprise, and is obvious and dependable, leads instantly to funding that can in flip create tax dollars. Maybe the US and the UK would possibly take observe at some point.The second is one which even I get bored of repeating.These initiatives are pushed by institutional buyer demand. Wholesale adoption of cryptos is gathering tempo.Curious Cryptos’ Commentary — BTC Cycles IdeaAs we strategy the April 2024 halving (is it that point already?) you'll see loads of evaluation alongside these traces:Distinct from technical evaluation, the cycle evaluation does present some remarkably constant themes if we assume the writer hasn’t made some Thomas Piketty model changes to make the information match the speculation.I'd be cautious of assuming that historical past will repeat itself, not least as a result of virtually everybody seems to be ignoring the truth that the affect on provide of this halving shall be a discount of solely 3.125 BTC per block, a far cry from the reduce of 25 BTC for the primary halving.However in some methods, it may be a helpful information.It is a clear reminder that speedy ramp-ups in value are fuelled by speculative cash, trying to make a fast flip. These weak palms don’t cling round when dissatisfied. Even devoted HODLERs just like the CCC Treasury will seemingly loosen up into the following bull run, although the Treasury committee continues to be not completely selected that time.There may also be a spotlight that November 2025 will see the following ATH signalling the beginning of the following bear market. Lengthy-term individuals have that date seared into their reminiscence, with a view to utilizing scorching cash as exit liquidity within the months main as much as it.Compliance StuffSet off alert warning.If any reader feels that they're “actually shaking” (a declare made by a scholar at Durham College who can not cope emotionally, and positively not intellectually, with a distinct viewpoint that was expressed by Rod Liddle) after studying my commentary, then I can solely recommend you don’t learn, or don’t shake. It’s as much as you.Cryptos — none of my commentary ought to be seen as a suggestion to become involved in cryptos. I may be speaking full nonsense with out figuring out it. Any crypto investments should be seen as extraordinarily excessive danger and handled as if they're price zero till offered.Shares — simply to make it clear this isn't a inventory advisory service. The CCC staff doesn't present monetary recommendation in any method in any respect. Any reference to asset costs on this commentary is there to easily give context to the commentary and to present color to the efficiency of sure shares associated to cryptos.

For the avoidance of doubt, this text shouldn't be an incitement to purchase cryptos, purchase shares, and even to promote members of the family within the hope of shopping for cryptos or shares.Please observe that each one copyright is reserved to Curious Cryptos Ltd.Ask politely to share and replica often, and your want shall be granted.New subscribers to this missive or our web site are all the time most welcome.www.curiouscryptos.comhttps://medium.com/@mark_curiouscryptos [ad_2]

[luna-hatake-uchiha]

Navigating the Forex Broker Landscape: Key Factors to Consider

When it comes to venturing into the world of forex trading, one of the most critical decisions you'll make is choosing the right forex broker. With a plethora of options available, it can be overwhelming to identify the perfect fit for your trading needs. To simplify this process, let's explore the key factors you should consider while navigating the forex broker landscape.

Regulatory Compliance and Security

Before diving into the exciting world of trading, it's imperative to ensure the safety of your investments. Regulatory compliance plays a vital role in this aspect. Reputable forex brokers are regulated by recognized financial authorities, such as the US Commodity Futures Trading Commission (CFTC), the UK Financial Conduct Authority (FCA), or the Australian Securities and Investments Commission (ASIC). These regulations are in place to protect traders from fraud and unethical practices. When researching potential brokers, prioritize those who adhere to stringent regulatory standards.

Trading Platforms and Tools

The trading platform serves as your gateway to the forex market. A user-friendly and feature-rich platform can significantly enhance your trading experience. Look for brokers that offer robust trading platforms like MetaTrader 4 (MT4) or MetaTrader 5 (MT5), which provide advanced charting tools, technical indicators, and the ability to execute trades seamlessly. High leverage forex brokers often offer these platforms to cater to traders seeking amplified trading opportunities.

Spreads, Fees, and Commissions

Trading costs can impact your profitability, so it's crucial to understand a broker's fee structure. Spreads, the difference between the buying and selling prices, are a primary source of revenue for brokers. Lower spreads are generally favorable for traders, as they reduce transaction costs. Additionally, inquire about any commissions or hidden fees that might be associated with specific trades or account types. High leverage forex brokers often attract traders with competitive spreads and transparent fee structures.

Available Trading Instruments

A diverse range of trading instruments allows you to explore various market opportunities. While forex pairs might be your primary focus, consider brokers that offer a broader selection of assets, such as commodities, indices, and cryptocurrencies. This enables you to diversify your portfolio and adapt to different market conditions.

Customer Support and Assistance

In the fast-paced world of forex trading, reliable customer support is essential. You might encounter technical issues, require assistance with your account, or have questions about trading strategies. Choose a broker that offers responsive customer support through multiple channels, including live chat, Best Crypto Tax Software, email, and phone. A broker's commitment to addressing your concerns promptly can make a significant difference in your trading journey.

Conclusion

Selecting the right forex broker is a pivotal step that can greatly influence your trading success. Consider factors such as regulatory compliance, trading platforms, spreads and fees, available trading instruments, and customer support when evaluating different options. Remember that not all brokers are created equal, and what works for one trader might not work for another. Take your time to research and compare various brokers, and ensure that your chosen broker aligns with your trading goals and preferences.

In your search, you might come across various brokers, including those promoting themselves as high leverage forex brokers. These brokers offer traders the ability to magnify their positions, potentially leading to amplified profits. However, remember that while high leverage can amplify gains, it can also intensify losses. It's crucial to approach high leverage trading with caution and a solid risk management strategy.

In conclusion, the forex broker you choose should be a partner in your trading journey, providing the tools, support, and security you need to navigate the dynamic forex market effectively. By considering the key factors mentioned above and conducting thorough research, you'll be better equipped to make an informed decision that aligns with your trading objectives.

[lizseyi]

The UK’s Crypto Tax Break For Foreign Investors Using Local Brokers Is Now In Force - TAG Consultancy

The UK Government’s quest to turn the country into a crypto hub is continuing, it having been confirmed that since Sunday 1st January, a tax exemption for overseas investors buying crypto through local investment managers or brokers has been in effect. 

It is the latest development in the UK that supports Prime Minister Rishi Sunak’s previously stated goal to transform the country into a global crypto hub.  

“An important factor in attracting global investors” 

HM Revenue and Customs (HMRC), the department of the UK Government responsible for tax collection, said in an email to the CoinDesk news outlet that “the exemption is an important factor in attracting global investors, meaning foreign investors won’t be brought into UK tax simply by appointing UK-based investment managers.” 

The email continued: “To build upon the UK’s position as an investment management hub, this exemption has been extended to include crypto assets, so that funds which include them aren’t put off from appointing UK managers.” 

The UK already makes available a tax guide for resident traders of crypto. The UK Government has been consulting on various changes that would impact on the country’s crypto industry, including – last July – publishing a consultation seeking the opinions of investors and professionals on how HMRC should tax decentralised finance (DeFi). 

Parliament is also continuing to debate the broad-based Financial Services and Markets Bill, which – if it becomes law – is set to hand local financial regulators greater powers in relation to crypto. As of the time of this article being written, the bill was receiving its second reading in the House of Lords, which is the UK Parliament’s upper house. 

The UK Treasury is also expected to launch a consultation shortly on the best ways of regulating the crypto sector. Such moves back up the recent pledge by one of the Sunak Government’s ministers, Andrew Griffith, that the still relatively young administration wanted to “tentatively seize” the opportunities crypto presented to the country. 

We can help you with a wide range of crypto and non-crypto-related business functions 

Here at TAG Consultancy, we have built a strong reputation for our provision of all manner of business services for individuals and organisations in the British Overseas Territory of Gibraltar. 

A New Year means new challenges, but also new opportunities, and we have an excellent track record of helping our clients to survive and thrive. 

So, whether it is accounting, auditing, business start-up, compliance services, or the launch of an AML-compliant ICO that you would like to receive assistance with from us – to cite just some of our areas of expertise – please do not hesitate to enquire today via phone or email. We offer a free consultation to all new clients. 

[naailandco]

Crypto Accountant UK

[mmbaaccountants]

What Accounting Solutions Does MMBA Provide for Clients in Luton?

At MMBA, we understand the importance of professional accounting services for businesses in Luton. 

Our team of experts is dedicated to providing comprehensive accounting solutions, including bookkeeping, financial statement preparation, and budgeting. 

With our services like , you can focus on growing your business while we handle the numbers.

One size does not fit all when it comes to accounting solutions. That's why MMBA offers customized accounting services for small and medium-sized businesses in Luton. 

Whether you're a startup or an established company, we have the expertise to meet your accounting needs and help you achieve your financial goals.

In conclusion, MMBA Accountants Luton is your go-to partner for accounting solutions in Luton. With our tailored services and expert team, we can help your business thrive. Contact us today to learn more about how we can help you achieve financial success!

[mark-tencaten]

Mark Tencaten - How the digital pound might interact with cryptocurrencies

The UK has developed a strategy for a central bank digital currency, like many other nations. A digital pound will function as a regular online payment method. Although it wouldn't pay interest like a typical savings account (or even certain current accounts), it might make financial services more widely available in the Nation.

Recently, the Bank of England put up a fundamental framework for the operation of a digital pound. A bold schedule for launching one by 2025 has been proposed.

The viability of a UK CBDC, according to Mark Tencaten, would largely depend on whether the advantages of providing a digital currency offset the expenses of developing and implementing the infrastructure necessary for supporting the new payment system.

CBDCs have definite advantages, such as promoting financial inclusion by making it simpler for the 1.2 million unbanked citizens of the UK to sign up for banking services. The government could also utilize the online wallets that will store people's digital pounds to make "fiscal transfers" like giving tax breaks or assistance payments to people's homes and companies.

But, the present proposal from the Bank of England also poses some questions concerning a digital pound. Especially how (or whether) it may interact with other digital currencies like cryptocurrency assets. Although the bank offers a number of models, in general, this could assist lower systemic risk in the cryptocurrency industry and broaden the range of banking options available to UK clients.

Stablecoins are particularly mentioned in the CBDC consultation document from the Bank of England. In contrast to traditional currency, which the government issues, private corporations create and distribute digital assets. A stablecoin's value is tied to a reliable asset, such as the US dollar or British pound, unlike other digital currencies like bitcoin. But what about the British virtual pound?

Why could stablecoins be a good addition to digital pounds?

Mark Tencaten discusses how a stablecoin and a digital pound have certain similarities. They could "coexist" in a hybrid payments economy. It compares to how we currently utilize bank accounts and cash in the same payment system and highlights how technological advancements like ATMs have made this coexistence even simpler over time.

Mark Tencaten also states that to support a digital pound, stablecoins would need to be "completely supported with high-quality and liquid assets ."Additionally, it offers a scenario in which these underlying assets may be "kept exclusively with the central bank," saying that doing so would enable the stablecoin to be "economically identical to the digital pound" and lower financial risk.

If a stablecoin was backed by digital currency, the issuer would issue holders stablecoin tokens according to the worth of digital pounds, which holders could use for domestic and international payments as well as cryptocurrency trading. These private currencies would function on the blockchain that facilitates and lowers the cost of payments. Stablecoins are already being utilized in several nations as a hedge against rising prices and macroeconomic unpredictability.

The control of cryptocurrency

The crypto sector may gain from this as well. Unregulated, unaudited private banks and organizations currently control stablecoins. Yet, a stablecoin supported by a digital pound kept in a central bank account would be considerably more transparent and reliable. The central bank could periodically audit the reserves of stablecoin providers. Lawmakers may also impose capital restrictions, such as a requirement that a certain proportion of issuers' reserves be maintained in an account with the banking system.

Extreme capital needs, however, may have a negative impact on stablecoin viability. They can profit from their holdings or the assets stored against the stablecoins they issue, as they are often tied to interest-bearing commodities like Treasury bonds.

In contrast, a stablecoin issuer that is backed by the digital pound is unlikely to see interest on its central bank account. It seems improbable that the Bank of England would grant a stablecoin provider the same type of account. This would mean adhering to the same rules, which might have an impact on the freedom that cryptocurrency asset producers prefer.

There is little question that stablecoins supported by a digital currency kept at the central bank could help with some of the systemic problems associated with this kind of crypto asset. A significant stablecoin's value has fallen dramatically over the past year. This often occurs when a market incident leads investors to quickly sell their holdings, and the issuer has trouble handling the large volume of simultaneous redemptions.

It would be possible to conduct redemptions and withdrawals while preserving the coin's value relative to the virtual pound if issuers held a specific proportion of liquid digital currency deposits at the central bank. A central bank might offer insurance to stablecoin users to preserve their holdings to a certain extent, even in issuer insolvency.

In his conclusion, Mark Tencaten says that similar to cash and bank accounts, it's conceivable that stablecoins and digital assets can coexist and benefit one another. A digital pound might also highlight the expanding importance of individual money in the economy. This would promote financial inclusion while also assisting in making the financial institution safer.

[mubashirnews]

CoinTracker partners with bookkeeping company to ease tax filing for UK crypto investors

Crypto portfolio and tax manager CoinTracker has partnered with By The Book Accountancy to help UK crypto investors navigate the complexities of tax filing as the regulatory landscape continues to evolve. According to a press release issued on Jan. 23, Cointracker has collaborated with accountant firm By The Book Accountancy to release a series of academic content and resources for UK crypto…