Of all the companies, you never thought, a beer company would walk the talk when it came to adopting cryptocurrencies. Yep, a beer vending machine has become the first of its kind to accept cryptocurrency payments.
According to news portal CoinDesk, a decentralized identity startup Civic debuted a $15,000 machine that can verify a user’s age, as well as accept payment via crypto. In a conversation with the news portal, Civic’s Titus Capilnean said, “We’re merging identity and payment into one transaction.”
The company said that the machines have sold almost 150 beers, per day, since they made their debut last Sunday, which has resulted in profit of nearly 100,000 CVC ($7,600) in sales alone.
According to Bitcoin Exchange Guide, the Civic BD10 Vending Machine enables users to dispense age or identity-gated products. The payment solution is already available with the machine. Each of the machines will come turn-key, plug-and-play and ready to stock with a product. Each machine has a capacity of 150-500 items depending on the size they have.
According to Capilnean, iPhone users with the Civic Pay app downloaded and with a verified identity received enough CVC to buy a beer. Each of the beers had a price of 200 CVC each. When asked about the potential partners, Capilnean declined to provide any more information, but said that the company was talking to several parties.
CZ: “everyone will be in crypto,” says it’s “inevitable”
On Wednesday, March 20, Binance chief executive Changpeng “CZ” Zhao tweeted his disagreement with a recent comment made by JP Morgan executive Ron Karpovich who suggested banks would always be needed for moving funds.
Karpovich, Global Head of eCommerce said in an interview with CNBC’s Squawk Box that doesn’t believe a specific cryptocurrency will be the ultimate payment solution.
CZ disagreed with this statement, arguing that “many (not so small) businesses already don’t use banks, and they work just fine.
Now, we can't agree. Many (not so small) businesses already don't use banks, and they work just fine.
JPM just don't get it, yet. (also a reason they are not a threat to #XRP)
— CZ Binance (@cz_binance) March 20, 2019
The biggest expense any company faces in employee salaries, which has traditionally been handled through banks. In August last year, Chepicap reported that Michael Arrington, founder of TechCrunch, was told by CZ that 90% of Binance’s employees are paid in Binance Coin (BNB).
Read more: At Binance, 90% of employees are paid in Binance Coin
Additionally, Jack Dorsey, Twitter and Square CEO tweeted:
#BitcoinTwitter and #CryptoTwitter! Square is hiring 3-4 crypto engineers and 1 designer to work full-time on open source contributions to the bitcoin/crypto ecosystem. Work from anywhere, report directly to me, and we can even pay you in bitcoin! Introducing @SqCrypto. Why?
— jack (@jack) March 20, 2019
Ultimately, CZ says, “Everyone will be in crypto,” making it the dominant form of payment. As such, even JP Morgan, America’s largest bank, will have to use crypto.
One user replying to CZ’s tweet called out the Binance CEO stating he supported six banks issuing stablecoins on IBM’s World Wire platform.
Read more: 6 international banks to launch stablecoins on IBM and Stellar’s World Wire
Cz responded with:
I just said "everyone will be in crypto". And more adoption is better than less. I never supported or not supported any particular bank.
I would welcome everyone to join crypto, which is inevitable anyway. Better get use to it rather than fight it.
— CZ Binance (@cz_binance) March 21, 2019
Crypto Lawyer Drew Hinkes Joins Firm to Help ICO Issuers Fight Back
Blockchain lawyer Andrew Hinkes is spoiling for a fight.
The general counsel at investment bank Athena Blockchain and an adjunct business and law professor at New York University, Hinkes believes token issuers will soon start pushing back against regulatory enforcement actions and demanding clearer guidance, after mostly taking it on the chin for the last year or so. And when that happens, he’ll be in their corner.
Revealed exclusively to CoinDesk, Hinkes has joined the blockchain and digital currency practice of the law firm Carlton Fields, where he will focus on litigating cases for token sellers.
“What we have seen so far is folks just settling with the regulators, but we have started seeing some companies that want to fight back or try to use the litigation process to get a better clarity on what their obligations are by challenging some of the positions taken by the regulators in court,” Hinkes told CoinDesk.
A member of the blockchain community since 2014 and occasional CoinDesk op-ed contributor, Hinkes has been for years advising companies including token issuers, bitcoin ATM networks, investment funds and high-net-worth investors.
Earlier in his career, though, he duked it out in court on behalf of corporate clients in construction, real estate and consumer fraud cases. As such, he will act as “a bridge between our firm’s crypto regulation and corporate practice and our litigation practice,” said Justin S. Wales, the co-chair of Carlton Fields’ blockchain practice.
This cross-training will be valuable to the team, Wales told CoinDesk, noting that the industry has already seen “a four-fold increase in suits involving cryptocurrencies or blockchain-based technologies in each of the last four years.”
“There is absolutely going to be more litigation in the space, both as defenses of regulatory enforcement and through civil litigation. We are already seeing this,” Whales said.
Hinkes will keep his job at Athena Blockchain, the firm he joined last year that helps companies issue tokenized securities, and his professorships at NYU. “Obviously, there are ethical concerns when an attorney has a stake in both in a bank and a law firm. But in consultations with legal folks at Carlton Fields, we’re comfortable with appropriate disclosures to be made,” Hinkes said.
As a harbinger of brawls to come, Hinkes cited the example of the startup Kik, which announced in January that it’s prepared to challenge the SEC in court to prove its initial coin offering (ICO) wasn’t a sale of unregistered securities.
After watching the Securities and Exchange Commission come after the ICOs of 2017, newer projects are acting cautiously, launching token offerings in the form of STO and working closely with the regulators to avoid any troubles. But those who had already sold tokens in the past year or two don’t have this option anymore.
The problem for the industry at the moment is that there is no comprehensive regulation to rely upon, Hinkes said.
“The regulators, for the most part, have so far provided us with a bunch of orders that were written in the way to tell everyone what they expected to do, but it’s not guidance and it’s not a law,” he said.
One way to clarify the situation would be for Congress or a state to issue a law about the legal status of token sales, but in the absence of that, the only other way to get more clarity is to challenge the regulators and their position in court, he added.
However, challenging the SEC will require some internal work, too, Hinkes said, concluding:
“I expect that companies will push against the regulators, which will mean the companies will have to do internal investigations and will first investigate and then negotiate with the regulators. I think there will be significant civil and criminal litigation to come, an I believe it’s going to become a larger part of the cryptocurrency and blockchain world.
Sharia-Compliant Crypto Exchange Rain Adds Ripple’s Crypto Coin XRP to Its Trading Platform
Bahrain based crypto exchange, Rain recently announced that they are the first to complete the Central Bank of Bahrain’s (CBB) regulatory sandbox and is now in the process of applying for a license as it has passed a Shariah compliance certification for the region.
Rain was founded in 2016 by four entrepreneurs Yehia Badawy, Abdullah Almoaiqel, AJ Nelson and Joseph Dallago who shared a joint vision to create a fully Shari’a compliant exchange to provide trust for local cryptocurrency traders. It is backed by Bitcoin Core(BTC) developer Jimmy Song.
XRP is now live on Rain pic.twitter.com/5H5wrsjaj0
— Rain (@rainfinancial) March 20, 2019
The exchange has listed XRP in multiple pairs – XRP/BHD (Bahraini dinar), XRP/SAR (Saudi Riyal), XRP/AED (United Arab Emirates dirham), XRP/KWD (Kuwaiti dinar), XRP/OMR (Omani rial) and XRP/USD (US dollar).
Although, the exchange is in the beta version until they receive full licensure with the Central Bank of Bahrain. Although Rain’s sharia compliance certification is based on BTC, ETH, LTC, but the exchange is reportedly looking to obtain Sharia certification for XRP
Our sharia compliance certification is based on BTC, ETH, and LTC. We are in the process of getting an opinion on XRP.
— Rain (@rainfinancial) March 20, 2019
Abdullah Almoaiqel said:
If a Muslim today wants to invest, or be involved in Bitcoin, the information available to them mainly depends on the route they take.
A practicing Muslim with an inquiring mind may have to go through several loops, to find a reasonable argument, before reaching a conclusion. An argument, no matter how balanced, has to have its origins from within the proposed Islamic Finance Model as described by the Shariah.
Rain exchange hopes to bridge this gap. Industry experts say it could encourage new capital flows into the crypto ecosystem from a part of the world rich in natural resources like oil and gas. As it stands, few Persian Gulf residents officially participate in the crypto markets, partly for fear of the sector’s shadowy reputation.