Bitcoin is the first successful internet money based on peer-to-peer technology; whereby no central bank or authority is involved in the transaction and production of the Bitcoin currency. It was created by an anonymous individual/group under the name, Satoshi Nakamoto. The source code is available publicly as an open source project, anybody can look at it and be part of the developmental process.
Americans saving for retirement will be able to allocate up to 20% of their 401(k) accounts to Bitcoin. Regulators aren’t too convinced, though.
The US company specialising in asset management and pension funds,Fidelityis moving to allow its customers to allocate part of their retirement savings to Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. .
As reported by New York Times the giant pension plan provider will allow its customers to put Bitcoin in their tax-deferred 401(k) retirement accounts, as long a situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. as their employers allow it. If their employers allow it, workers with tax-deferredFidelity will be able to allocate up to 20% of their retirement savings to the cryptocurrency.
The measure could bring millions of people in the United States closer to the Bitcoin . Fidelity is the nation’s largest provider of 401(k) plans and administers pension programs. for employees of almost 23,000 companies . By 2020, it had $2.4 trillion in 401(k) assets under management.
Growing demand from savers
Cabe señalar que una cuenta 401(k) es un plan de ahorro e inversión para la jubilación patrocinado por la empresa que brinda a los empleados una exención de impuestos sobre el dinero que aportan. Contributions are automatically withdrawn from employees’ salaries and invested in funds of their choice.
According to the report, the new product is expected to be launched between June and September this year. Dave Gray, Head of Workplace Retirement Platforms and Offerings, Dave Gray, Head of Workplace Retirement Platforms and Offerings at Fidelity said the product came about as a result of growing customer interest and demand for offering digital assets in a retirement plan. In a separate interview for Wall Street Journal he added:
There is a need for a diverse set of investment products and solutions for our investors. We expect cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. to shape the way future generations think about investing in the short a trading technique in which a trader borrows an asset in order to sell it, with the expectation that the price will continue to decline. In the event that the price does decline, the short seller will then buy the asset at this lower price in order to return it to the lender of the asset, making the difference in profit. and long term.
Gray also said that the offer would be limited to Bitcoin and would not contemplate other cryptocurrencies, at least initially; although it could consider other options depending on customer demand.
Reports indicate that the firm MicroStrategy directed by the enthusiast of Bitcoin Michael Saylor, has already accepted the initiative. “ Planeamos ofrecer a nuestros empleados la opción de invertir en B itcoin as part of your 401K portfolio. Saylor announced in a tweet. In the meantime, Fidelity also indicated that it is in talks with other employers interested in the product.
As @MicroStrategy continues to be a pioneer in bitcoin for corporations, we are planning to offer our employees the option a contract giving the buyer the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price. to invest investing is when you put money in a financial scheme with the intent of making a gain. in #bitcoin as part of their 401K portfolio. $MSTR pic.twitter.com/xBFeEugJVj
— Michael Saylor⚡️ (@saylor) April 26, 2022
Regulators are not convinced
The new offer ofFidelity is not without its critics as regulators have expressed skepticism. Just a few days ago, the U.S. Department of Labor, which regulates company-sponsored retirement plans, noted in a blog post that the idea of exposing 401(k) participants to direct investments in cryptocurrencies raises “ serious concerns ” .
The publication of he acting undersecretary of the agency’s Employee Benefits Security the term securities refers to a fungible and tradable financial instrument that carries a type of monetary value. Administration, Ali Khawar, cited the agency’s ” serious risks The “risk factors” that can come with exposure to such assets, including valuation concerns, obstacles to making informed decisions, price volatility a statistical measure of dispersion of returns, measured by using the standard deviation or variance between returns from that same security or market index. and a still unclear regulatory landscape in the country.
Despite the agency’s refusal,Fidelity no es el primer proveedor de planes de jubilación en incursionar en las criptomonedas. Como informó DiarioBitcoin the firm Digital digital technologies are these electronic tools that have the ability to generate, store or even process data. Asset Investment Management ( DAiM) launched first 401(k) retirement plans in 2020 backed by Bitcoin . También el proveedor ForUsAll partnered last year with Coinbase is an American company that operates a cryptocurrency exchange platform. para ofrecer exposición a Bitcoin to your retirement savings account an account is essentially a whose purpose is to track the financial activities of a specific asset/ holders, as recalled by Cointelegraph .
The interest ofFidelity in the sector could definitely elevate adoption among a larger number of people. Despite being known primarily for its pension business, the company stands out as an early participant in the crypto space. In 2018, it began offering trading and custody custody is a financial institution's legal capacity to keep and preserve financial assets for its clients to avoid asset theft or loss. of digital assets to institutional clients, and in 2020, it introduced a private fund of Bitcoin for accredited investors. It also has an exchange-traded fund (ETF) of Bitcoin which was launched in Canada last year.
***This post was updated to include Michael Saylor’s tweet and comments.
- Fidelity files two new ETF an Exchange-traded Fund, an investment fund that users trade on exchanges and trading platforms. applications, one related to the metaverse a metaverse is a digital universe that contains all the aspects of the real world, such as real-time interactions and economies. It offers a unique experience to end-users.
- Un fondo público de pensiones en EE UU compra USD $25 millones en Bitcoin y Ether the form of payment used in the operation of the distribution application platform, Ethereum.
- Australian pension fund, which has 1.7 million members, plans to invest in cryptocurrencies
Article by Hannah Estefania Perez / DiarioBitcoin
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