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Switzerland’s Largest Online Retailer Starts Accepting 10 Cryptocurrencies

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The largest Swiss online retailer, Digitec Galaxus, has started accepting crypto payments at its two stores. Customers can choose from 10 cryptocurrencies to pay with including BTC, BCH, BNB, ETH, TRX, OMG, and XRP. One of the stores specializes in consumer electronics while the other focuses on everyday needs.

Also read: SEC Chair Explains Key Upgrades Needed for Bitcoin ETF Approval

Digitec Galaxus Accepts Crypto Payments

Digitec Galaxus AG announced Tuesday that customers can now pay for their purchases with cryptocurrencies at its two online shops: digitec and Galaxus. Ten cryptocurrencies are supported — BTC, BCH, BSV, BNB, ETH, LTC, NEO, OMG, TRX, and XRP.

Switzerland's Largest Online Retailer Starts Accepting 10 Cryptocurrencies
Checkout page on galaxus.ch.

Claudio Schaad, leader of Team Spectre, one of the teams that make up the engineering department at Digitec Galaxus AG, discussed the new payment option in a blog post on his company’s website. “We’ve been looking into cryptocurrencies for a while now,” he revealed. The post explains that “instead of creating an own wallet or even cryptocurrency, digicon or the such, Spectre chose [to] work with a company called Coinify,” adding:

In simpler terms: while shopping, if your purchase price exceeds 200 francs, you have the option to pay with cryptocurrencies. What arrives on digitec’s end are Swiss francs.

Digitec specializes in IT, consumer electronics and telecommunications goods while Galaxus claims to be the largest online department store in Switzerland with a growing range of products for everyday needs. The two stores form Digitec Galaxus AG, its website describes.

Switzerland’s Largest Online Retailer Now Accepts 10 Cryptocurrencies

According to Oliver Herren, co-founder and CIO of Digitec Galaxus, the company currently has around 2.7 million items for sale, from shoehorns to wheat beer to gaming PCs. He was quoted as saying:

Cryptocurrencies are fascinating and could become a relevant means of payment in e-commerce — we want to support this development.

Paying With Cryptocurrencies

A blog post on Galaxus’ website details that “The new payment option was created as part of a pilot project together with the Swiss e-payment specialist Datatrans AG,” which works with Danish crypto payment provider Coinify.

Customers shopping on digitec or Galaxus can choose to pay with cryptocurrency at checkout. They will be redirected to a page on Coinify which displays the amount due in BTC with a QR code. Customers can choose among the 10 supported cryptocurrencies and complete the checkout process. Prices are locked in for 15 minutes.

Switzerland's Largest Online Retailer Starts Accepting 10 Cryptocurrencies

When choosing a cryptocurrency other than BTC, customers are asked to provide an address so that funds can be returned should an error occur. Furthermore, the company warns of a processing delay when paying with other coins.

Switzerland's Largest Online Retailer Starts Accepting 10 Cryptocurrencies

The blog post further notes that “Normally, the payment confirmation by Coinify takes place within a few minutes,” adding:

Digitec Galaxus does not charge any fees for cryptocurrency payments. Coinify charges a conversion fee of 1.5% of the purchase amount. Other, but small, transaction fees will be charged depending on the currency, as well as how fast the transaction is to be confirmed.

What do you think of Digitec Galaxus accepting 10 cryptocurrencies? Let us know in the comments section below.


Images courtesy of Shutterstock, Coinify, and Digitec Galaxus AG.


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The post Switzerland’s Largest Online Retailer Starts Accepting 10 Cryptocurrencies appeared first on Bitcoin News.

Stablecoins Are Threatened by These Two Major Issues

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On the heels of recent commentary from the published correspondence between Securities and Exchange Commission (SEC) chairman Jay Clayton and representative Ted Budd, SEC senior advisor Valerie Szczepanik explained at Austin’s SXSW conference that stablecoins may be violating current securities laws.

Also read: Payglobal Provides Cryptocurrency to Fiat Transfers With Existing Bank Cards

Stablecoins May Live in the Land of Securities

Over the last two years, stablecoins have become an extremely hot topic while becoming popular vehicles for hedging against the volatility tied to cryptocurrency markets. Tether (USDT) has been king of the stablecoins for a while, and recently made headlines for a revision to the company’s website. The change caused uproar within the cryptocurrency community because instead of confirming that each Tether is backed by one USD, the terms were substantially revised.

“Every tether is always 100 percent backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities,” the website now reads.

Stablecoins Are Threatened by These Two Major Issues

Following Tether’s recent website update, on March 15, SEC senior advisor Valerie Szczepanik explained that due to the inherent nature of stablecoins, the tokens could “raise issues under securities laws.” Szczepanik explained that stablecoins are broken down into categories which include tethering the tokens to “some real asset, like real estate or gold and oil — Coins tied to a fiat currency held in reserve, and a third category that could become problematic under the law.” The SEC advisor added while on stage at SXSW: “I’ve seen stablecoins that purport to control price through some kind of pricing mechanism, whether it’s tied to the issuance, creation or redemption of another type of digital asset tied to it, or whether it is controlled through supply and demand in some way to keep the price within a certain band.”

Szczepanik continued:

It’s these kinds of projects where there is one central party controlling the price fluctuation over time that might be getting into the land of securities.

The recent statements from the SEC senior advisor and chairman Jay Clayton’s statements last week could mean that stablecoins fall into the security category. Stablecoins, no matter whether they are backed by reserves held in a bank, or use the over-collateralization method favored by the Maker network, are essentially promises. Skeptics take issue with claimed tether (USDT) reserves because they believe the company has failed to prove its backing. Tether’s recent website change provoked popular finance author Frances Coppola to write: “Tether’s U.S. dollar peg is no longer credible,” in a seething critique.

Coppola’s assessment continued:

Perhaps crypto enthusiasts should read up on the fate of Reserve Primary Fund in 2008. Or perhaps Venezuela — After all, an exchange rate peg only holds until the reserves run out.

Stablecoins Are Threatened by These Two Major Issues

A Crypto Flash Crash Scenario Could Put a Heavy Strain on Stablecoins

Other stablecoins are based on promises as well and some have the stamp of U.S. regulators in order to make the pledge more robust. Trusttoken (TUSD) has tried to tackle transparency by allowing TUSD owners a “real-time view” of the company’s reserves. According to the Trusttoken team, accounting firm Armanino has developed a platform that allows users to verify the TUSD dollar collateral. Dai has over-collateralization, so there’s some safety net there, but critics believe that if the price of ethereum (ETH) plummeted in a flash, the stablecoin would have issues unless the team sold the collateral quickly.

A flash drop in overall fiat value within the cryptoconomy really puts a strain on stablecoins and when bitcoin and a few other digital assets dropped significantly in value last October this was quite noticeable. The belief that stablecoins can hold their stability would truly be put to the test if there was a flash crash throughout the crypto markets.

Stablecoins Are Threatened by These Two Major Issues

Just like their fiat cousins, all stablecoins are only as good as their promises and a flash crash and severe lack of liquidity could ultimately wreak havoc on digital promissory notes. On October 15, when the cryptoconomy shuddered with another price crash, tether (USDT) dipped below the $1 mark. However, despite concerns over coins like tether, Szczepanik asserted at SXSW that “algorithmic stablecoins” raise the most issues because there is a lack of any real collateral.

“You’re talking about folks who are buying into that ecosystem, or are buying this coin, with the expectation that somebody else is going to be holding a profit, or guaranteeing a profit or holding the price at a certain level. Again, that could raise issues under securities laws.”

Stablecoins Are Threatened by These Two Major Issues

Stablecoins Face a Future That Falls Under Securities Laws

At the moment, stablecoins face some significant hurdles and two major issues. One is the promise to hold to constant stability and liquidity especially during a big market crash. The other issue is whether stablecoins, whose legal status is currently being questioned, will pass the scrutiny of regulators. Stablecoin startup Basis knows these dangers only too well as the company was forced to close operations in December due to fears its product would be deemed a security.

“Folks like to put labels on things, but we’ll always look behind the label to see exactly what’s happening,” Szczepanik said. “So you can call it a utility coin, call it a stablecoin, call it a consumptive coin or some other coin — We’re [SEC] going to look at the characteristics.”

What do you think about the issues that stablecoins face in the future? Let us know what you think about this subject in the comments section below.

Disclaimer: This article is for informational purposes only. Bitcoin.com does not endorse or support any stablecoin and its affiliated companies. Readers should do their own due diligence before taking any actions related to the mentioned companies, creators, associates, or any of its affiliates or services. Bitcoin.com and the author are not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


Image credits: Pixabay, Bitcoin.com, Shutterstock, and various stablecoin logos.


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The post Stablecoins Are Threatened by These Two Major Issues appeared first on Bitcoin News.