Сryptocurrency and Internet of Things: Problems of Implementation and Realization

IoT (Internet of Things) requires the implementation of digital encryption of information, transaction support and recording of all events for security. It can provide cryptocurrencies protocols with adding an additional possibility of payments. This opportunity is not so much demanded at the hardware level as in the software implementation. We have discovered that IoT devices are widely used for illegal purposes for trusts or network consolidated attacks, and virtually no legal and useful ways of using their hardware-distributed capabilities. Standardization and compatibility in IOT network should become the main tools for the possibility of introducing new solutions, testing their utility, performance and safety. The standardization of a new approach to interactive protocols in the IOT network and the Internet with a finance approach is now inevitable. We need new IEEE standards for cryptocurrencies and IoT functioning. They must include standards for protocol functioning, transaction validation and saving, privacy and security support. Cryptocurrencies and IoT interaction diagram were proposed. The IoT network devices technology will be in the future instance of the smart class of digital-physical systems, which also encompasses technologies such as smart homes, intelligent transportation systems, smart cities etc. The financial aspect for purchasing software, services, solutions and sales of the resulting benefits will complement this network with additional capabilities. The development of standards for the financial level of functioning is also necessary.IoT (Internet of Things) requires the implementation of digital encryption of information, transaction support and recording of all events for security. It can provide cryptocurrencies protocols with adding an additional possibility of payments. This opportunity is not so much demanded at the hardware level as in the software implementation. We have discovered that IoT devices are widely used for illegal purposes for trusts or network consolidated attacks, and virtually no legal and useful ways of using their hardware-distributed capabilities. Standardization and compatibility in IOT network should become the main tools for the possibility of introducing new solutions, testing their utility, performance and safety. The standardization of a new approach to interactive protocols in the IOT network and the Internet with a finance approach is now inevitable. We need new IEEE standards for cryptocurrencies and IoT functioning. They must include standards for protocol functioning, transaction validation and saving, privacy and security support. Cryptocurrencies and IoT interaction diagram were proposed. The IoT network devices technology will be in the future instance of the smart class of digital-physical systems, which also encompasses technologies such as smart homes, intelligent transportation systems, smart cities etc. The financial aspect for purchasing software, services, solutions and sales of the resulting benefits will complement this network with additional capabilities. The development of standards for the financial level of functioning is also necessary

Cryptocurrency with a Conscience: Using Artificial Intelligence to Develop Money that Advances Human Ethical Values

Cryptocurrencies like Bitcoin are offering new avenues for economic empowerment to individuals around the world. However, they also provide a powerful tool that facilitates criminal activities such as human trafficking and illegal weapons sales that cause great harm to individuals and communities. Cryptocurrency advocates have argued that the ethical dimensions of cryptocurrency are not qualitatively new, insofar as money has always been understood as a passive instrument that lacks ethical values and can be used for good or ill purposes. In this paper, we challenge such a presumption that money must be ‘value-neutral.’ Building on advances in artificial intelligence, cryptography, and machine ethics, we argue that it is possible to design artificially intelligent cryptocurrencies that are not ethically neutral but which autonomously regulate their own use in a way that reflects the ethical values of particular human beings – or even entire human societies. We propose a technological framework for such cryptocurrencies and then analyse the legal, ethical, and economic implications of their use. Finally, we suggest that the development of cryptocurrencies possessing ethical as well as monetary value can provide human beings with a new economic means of positively influencing the ethos and values of their societies

Cryptocurrency functioning in the global economy

The article reveals a conceptual basis of the cryptocurrency functioning. The main types of cryptocurrencies are featured and analyzed as well as their general strengths and weaknesses. Based on the price dynamics correlation analysis of some cryptocurrency types, a general low level of dependence between digital assets is established. The main functions of the cryptocurrency are formulated in the form of transformed money functions. Also, additional functions of cryptocurrencies are defined on the basis of their innovative nature, as well as the role in the modern financial system and world economic relations

Free Money, But Not Tax-Free: A Proposal for the Tax Treatment of Cryptocurrency Hard Forks

Cryptocurrency has attracted extraordinary attention as one of the greatest financial innovations in recent years. Equally noticeable are the increasingly frequent cryptocurrency events, such as hard forks. Put simply, a cryptocurrency hard fork happens when a single cryptocurrency splits in two, which results in original coin owners receiving free forked coins. Such hard forks have resulted in billions of dollars distributed to U.S. taxpayers. Despite ongoing regulatory efforts, to date, the Internal Revenue Service (IRS) has yet to take a clear position on the tax treatment of cryptocurrency hard forks. The lack of useful guidance when filing tax returns has left taxpayers genuinely confused in the past few years. To fill this regulatory gap, this Note proposes a framework for cryptocurrency hard fork taxation. It explains the underlying technology of cryptocurrency hard forks, examines the recommended guidelines from the American Bar Association and the Association of International Certified Professional Accountants on cryptocurrency hard fork taxation, and references the current practices in Japan and the United Kingdom to lay a solid foundation for the proposed framework. Ultimately, this Note proposes a two-pronged tax on cryptocurrency hard forks. The first tax is levied on the profit made from the receipt of forked coins, and the second tax is levied on the profit made from the disposition of forked coins. A concrete proposal is provided for the applicable coin valuation, tax basis, holding period, and tax rate for the two prongs. Aiming to propose a tax treatment that is closest to the nature of cryptocurrency hard forks, this proposal considers various practical concerns, such as the inefficiency of the cryptocurrency market, the indirect possession of forked coins through third-party exchanges, and the fluctuating trading prices of forked coins when determining the valuation, tax basis, and holding period. This proposal not only provides clarity for taxpayers in filing tax returns and fulfilling tax obligations, but it also relieves the potential tax deferral and tax evasion problems that arise after a cryptocurrency hard fork

FinTech, blockchain and Islamic finance : an extensive literature review

Purpose: The paper aims to review the academic research work done in the area of Islamic financial technology. The Islamic FinTech area has been classified into three broad categories of the Islamic FinTech, Islamic Financial technology opportunities and challenges, Cryptocurrency/Blockchain sharia compliance and law/regulation. Finally, the study identifies and highlights the opportunities and challenges that Islamic Financial institutions can learn from the conventional FinTech organization across the world. Approach/Methodology/Design: The study collected 133 research studies (50 from Social Science Research Network (SSRN), 30 from Research gate, 33 from Google Scholar and 20 from other sources) in the area of Islamic Financial Technology. The study presents the systematic review of the above studies. Findings: The study classifies the Islamic FinTech into three broad categories namely, Islamic FinTech opportunities and challenges, Cryptocurrency/Blockchain sharia compliance and law/regulation. The study identifies that the sharia compliance related to the cryptocurrency/Blockchain is the biggest challenge which Islamic FinTech organizations are facing. During our review we also find that Islamic FinTech organizations are to be considered as partners by the Islamic Financial Institutions (IFI’s) than the competitors. If Islamic Financial institutions want to increase efficiency, transparency and customer satisfaction they have to adopt FinTech and become partners with the FinTech companies. Practical Implications: The study will contribute positively to the understanding of Islamic Fintech for the academia, industry, regulators, investors and other FinTech users. Originality/Value: The study believes to contribute positively to understanding of Fintech based technology like cryptocurrency/Blockchain from sharia perspective.peer-reviewe

Collection of Cryptocurrency Customer-Information: Tax Enforcement Mechanism or Invasion of Privacy?

After granting permission to the Internal Revenue Service to serve a digital exchange company a summons for user information, the Federal District Court for the Northern District of California created some uncertainty regarding the privacy of cryptocurrencies. The IRS views this information gathering as necessary for monitoring compliance with Notice 2014-21, which classifies cryptocurrencies as property for tax purposes. Cryptocurrency users, however, view the attempt for information as an infringement on their privacy rights and are seeking legal protection. This Issue Brief investigates the future tax implications of Notice 2014-21 and considers possible routes the cryptocurrency market can take to avoid the burden of capital gains taxes. Further, this Issue Brief attempts to uncover the validity of the privacy claims made against the customer information summons and will recommend alternative actions for the IRS to take regardless of whether it succeeds in obtaining the information