As I continue to become a BCH ambassador, I often come to a discussion with merchants which I approach and inform them about using Bitcoin Cash as a payment system since the fees are so low that it's nothing compared to common credit card solutions (e.g, Visa/MasterCard). The main issues I often hear from merchants are as follows:
How do I move the money to my business' bank account?
How to handle Tax and will a bank allow transactions from cryptocurrencies? (In my country, digital-currency are labeled as value asset, so like stocks, gold...etc)
Question one:
Most businesses are not accustomed to living off solely on bitcoin cash, this is because no one uses bitcoin cash, to begin with, so their only way to "cash-out" is using a regulated local exchange, which in the end adds another layer of complexity to the common people who just wish to remove the 3-4% fees by the credit card companies.
Not only that, due to arbitrage, the local exchange can decide on a different value than the average (say, the average spot between bitstamp, coinbase, binance) and that conversion alone can reach the 3-4% they were trying to avoid in the first place. Unless everyone is using bitcoin cash, people might not be able to "trade" between goods and services, which is what economics is based upon eventually.
I am wondering what Roger Ver /u/MemoryDealers can say about such situations, as I am sure he has faced the same issue with every merchant he has met and talked to. Not only that, the price of cryptocurrencies is susceptible to higher change in velocity compared to stable coins, so that means the merchants will convert their accepted BCH into USDT? or suffer the lows and highs as the world keeps on trading.
This is a very hard topic to answer and I would like to know if someone can propose a middle ground solution for how merchants suppose or should operate in that manner when switching between local currency to BCH.
Solutions:
Question two:
Since in my country, digital-currencies are not defined as currencies, when it comes to taxation, the merchants will have to suffer different taxation. The government has decided that any digital currencies (aka, crypto-currencies) are considered a store of value assets, and therefore they have different taxation steps. not only that, you are in need to inform of every currency-to-currency swap/sell/buy method in order to fully validate and calculate taxation (profits or losses).
I am sure that there are special lawyers in the field that might help merchants in that area, but the main issue is also that the banks themselves do not accept or at least have every right (whatever it may be) to dismiss crypto-related transactions.
Solutions:
Hedge with AnyHedge on detoken.net against the 25-30% taxation before cashing out to the bank
Bottom Line:
In a world where the adoption rate of digital currencies and specifically bitcoin cash, the usage of digital currencies by merchants seems very limited and it will take a long time until it reaches the mass. We must strive to give as much information as possible out there and be aware that in order for them to appreciate this technology, they must start to adopt and use the technology, even if it means to be a pioneer in their field.
It is true that ONLY powerhouses companies (e.g, Apple) help bring new technologies to the consciousness of humans, but when such companies already under regulations, the salvation will not come from them so easily; they will eventually create their own system (see Facebook with Libra) - but it will still be centralized.
For full discussion head on to the original reddit post
