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Retail Sales Moving to Internet, So Money Will Too

  • David Dinkins
    🤷 Opinions

    With the Internet pervading every aspect of our lives, including shopping and entertainment, it makes sense to give up physical money for digital currency

Retail Sales Moving to Internet, So Money Will Too
Cover image via u.today

Have you heard? The Internet is winning.

Last year’s holiday shopping season was the first time more shoppers planned to go online than into a physical store. In 2017, 55 percent of respondents said they would be doing their shopping online, up from 45 percent in 2016, according to Deloitte.

Retail apocalypse

CNBC has released a list of 19 major retailers that filed for bankruptcy last year- some of them more than once. Included are familiar names like Toys R US, The Limited, RadioShack, Rue21 and other. Likewise, in an article entitled “Retail Apocalypse,” Fox Business reports that 23 major retailers have plans to close additional stores this year. CNN Money calls 2017 the worst year in history for retail store closings.

Everywhere you turn, things are looking bad for brick and mortar retail. On the other hand, e-commerce is booming. Walmart’s online sales increased by 47 percent last year, while Amazon by itself made up 43 percent of all e-commerce sales. During the 2017 holiday season, e-commerce sales increased by over 10 percent while brick and mortar sales grew by a paltry four percent.

Internet of money

It seems to follow, that if the Internet is having such a massive influence on how we shop, how we are entertained and how we live our lives, that at some point the Internet is going to change how we interact with money as well. While credit cards have done a great job of bridging the gap between paper money and the Internet, something more is still needed. The Internet needs native currencies of its own.

Cutting out the middlemen almost always creates greater efficiency, speed and monetary savings. Using credit cards involves a half dozen or more different businesses working in tandem to make sure that your money eventually ends up in the hands of the retailer. This is fine for now, but a form of money that’s native to the Internet, that doesn’t have to go through the hands of numerous middlemen, that is the ultimate goal. In an era where cryptocurrency begins to take its rightful place as the money of the Internet, massive dumps of hacked credit cards will be a thing of the past.

Not dying, adapting

Brick and mortar stores still comprise 85 percent of retail sales, so there’s virtually no chance that you’ll see cities full of shuttered retail stores any time soon. However, Internet commerce is forcing brick and mortar companies to adapt to a changing landscape. They have to be more price competitive, sensitive to their customer’s needs and adaptable.

Cryptocurrencies aren’t going to destroy banks - not now, not ever. But they will eat into banks’ profits, and force bankers to change their ways. It’s amazing that in an era of instant global communication, near-instant peer-to-peer money transmission anywhere in the world, satellites and the Internet - traditional banks are still only open from 9 a.m. to 5 p.m. They’ve yet to adapt to people’s actual needs, seeing their customers as something to be exploited rather than cultivated.

As cryptocurrency continues to go mainstream, banks will have to find ways to actually accommodate their customers and provide good service, instead of just soaking them with fees. Banks will have to innovate, offer new products, be price-competitive and actually stay open during hours when their customers can come in.

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About the author

David Dinkins is a freelance writer who holds a Master of Arts in history from Louisiana Tech University and has extensive teaching experience both at LSU – Shreveport and University of Phoenix. He got involved with cryptocurrency in early 2014 working as part of the Dash Core Team and have served in the role of writer/editor (mostly editor) during that time. He has edited a huge number of documents for the Core Team, including the Evolution whitepaper, the PrivateSend whitepaper, and many of Evan Duffield’s communications with the Dash Community.

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Telegram to Ask Court Not to Classify Gram Tokens as Securities During February Hearing: Details

  • Alex Dovbnya
    📰 News

    The February court hearing is expected to put an end to the legal battle between Telegram and the SEC by determining whether Grams are securities

Telegram to Ask Court Not to Classify Gram Tokens as Securities During February Hearing: Details
Cover image via www.123rf.com

Telegram will ask the court rule against classifying their Gram tokens as securities during the upcoming February hearing, according to a letter to TON investors that was obtained by U.Today. 

As reported by U.Today, Telegram was slated to voice its arguments against the US Securities and Exchange Commission (SEC) on Oct. 24. However, a new court filing shows that the hearing has been postponed to Feb. 18-19, 2020.

IT IS ORDERED that Defendants shall not offer, sell, deliver, or distribute “Grams” toany person or entity, until the conclusion of the hearing scheduled by the Court for February 18and 19, 2020 (“Hearing”), except upon further order of the Court or agreement of the parties.

The Telegram team states that the hearing that is scheduled to take place in February is fundamentally different from the one that was supposed to happen in October. Telegram expected the court to put an end to the ongoing dispute by ruling on the "core arguments" that their Gram token is not a security. 

The October 24 hearing, in contrast, was only to consider whether a delay should have been mandated, without conclusively resolving the core argument. 

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On Oct. 17, Telegram filed a response to the SEC where it states that its native token "will merely be a currency or a commodity." One day later, the regulatory watchdog asked the court not to reject its request for a preliminary injunction against the Pavel Durov-helmed company, adding that its argument about Grams not being securities wasn't convincing.

Telegram will make sure that its position is presented "as strongly as possible" during the forthcoming hearing. 

The Telegram Open Network (TON) was scheduled to go live by Oct. 31 (otherwise, Telegram would have to return money to its investors). However, the SEC sued the messaging giant for allegedly running an unregistered ICO, which forced the company to delay the launch of its network to Apr. 30, 2020 while trying to cut a deal with its investors. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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