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9 china's e-currency, global minimum tax
the weather’s warming up and flowers are blooming, so we all know what that means - spring cleaning! TWR is cleaning up our act too, and switching email providers. don’t worry, you’ll automatically keep receiving our sunday issues, and we’ll send you a welcome email tomorrow to make sure. just be sure to move that sender into your priority or main inbox.
like what you see? refer a friend to TWR and receive groovy thank you gifts! congrats to reader N.K. for being the first subscriber to earn our homemade chocolate chip cookies. she does live like two thousand miles away in india, but that’s the distance we’ll go for our readers 😉.
big idea: china’s digital currency is taking off
china appears to be expanding its pilot of a government-run digital currency, called eCNY. first launched a year ago, 100,000 chinese citizens have been paying for their bubble tea with an app run by the central bank. instead of paying with cash yuans from their wallets, people pay with virtual yuans from their phones. one cash yuan is exactly equal to one virtual yuan in value, and theoretically could be exchanged.
china is the first major economic power to start such a currency, well ahead of rivals. the US has just done basic research and is years away from a pilot of this scale.
arguably, china’s effort isn’t quite cryptocurrency - it doesn’t use blockchain for security and isn’t decentralized at all. every transaction goes through china’s central bank for verification. like cash, the eCNY essentially eliminates middlemen in financial transactions, like debit/credit card processors and private banks or credit unions.
there are some china-specific reasons for why they’re in such a rush to launch a virtual currency, but their pilot highlights a danger of such efforts. their central bank can track every single transaction through the eCNY app, a level of surveillance unparalleled in history. government digital currencies will be convenient, but cannot come at the cost of privacy.
story to watch: yellen for global minimum tax
treasury secretary Janet Yellen called for a corporate minimum tax rate among G-20 nations of 21%. Joe wants to raise the business tax rate to 28% in the US to fund his infrastructure plans (after He-Who-Must-Not-Be-Named cut it from 40% to 21%).
negotiations have been ongoing for years among the world’s biggest economies, but Janet coming out in favor of them are a big boost. countries have been engaged in a ‘race to the bottom’ for decades, trying to entice companies to pack up and move headquarters with lower tax rates. the only short-term beneficiaries to such schemes are the tax haven countries with the lowest rates - ireland has just a 12.5% business tax. where do you think those leprechauns get all their gold from?
we’ll see what happens here, but it’s unlikely countries will agree to a number as high as 21%. everyone’s finally realizing that cutting corporate taxes hurts everyone in the long-term as the tax base is eroded.
this week’s image: easter at the white house
(The Atlantic) a bunny was caught attempting to impersonate the white house press secretary on easter monday. Joe...
like what you see? refer a friend to TWR and receive groovy thank you gifts! congrats to reader N.K. for being the first subscriber to earn our homemade chocolate chip cookies. she does live like two thousand miles away in india, but that’s the distance we’ll go for our readers 😉.
big idea: china’s digital currency is taking off
china appears to be expanding its pilot of a government-run digital currency, called eCNY. first launched a year ago, 100,000 chinese citizens have been paying for their bubble tea with an app run by the central bank. instead of paying with cash yuans from their wallets, people pay with virtual yuans from their phones. one cash yuan is exactly equal to one virtual yuan in value, and theoretically could be exchanged.
china is the first major economic power to start such a currency, well ahead of rivals. the US has just done basic research and is years away from a pilot of this scale.
arguably, china’s effort isn’t quite cryptocurrency - it doesn’t use blockchain for security and isn’t decentralized at all. every transaction goes through china’s central bank for verification. like cash, the eCNY essentially eliminates middlemen in financial transactions, like debit/credit card processors and private banks or credit unions.
there are some china-specific reasons for why they’re in such a rush to launch a virtual currency, but their pilot highlights a danger of such efforts. their central bank can track every single transaction through the eCNY app, a level of surveillance unparalleled in history. government digital currencies will be convenient, but cannot come at the cost of privacy.
story to watch: yellen for global minimum tax
treasury secretary Janet Yellen called for a corporate minimum tax rate among G-20 nations of 21%. Joe wants to raise the business tax rate to 28% in the US to fund his infrastructure plans (after He-Who-Must-Not-Be-Named cut it from 40% to 21%).
negotiations have been ongoing for years among the world’s biggest economies, but Janet coming out in favor of them are a big boost. countries have been engaged in a ‘race to the bottom’ for decades, trying to entice companies to pack up and move headquarters with lower tax rates. the only short-term beneficiaries to such schemes are the tax haven countries with the lowest rates - ireland has just a 12.5% business tax. where do you think those leprechauns get all their gold from?
we’ll see what happens here, but it’s unlikely countries will agree to a number as high as 21%. everyone’s finally realizing that cutting corporate taxes hurts everyone in the long-term as the tax base is eroded.
this week’s image: easter at the white house
(The Atlantic) a bunny was caught attempting to impersonate the white house press secretary on easter monday. Joe...
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By twr team
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the weather’s warming up and flowers are blooming, so we all know what that means - spring cleaning! TWR is cleaning up our act too, and switching email providers. don’t worry, you’ll automatically keep receiving our sunday issues, and we’ll send you a welcome email tomorrow to make sure. just be sure to move that sender into your priority or main inbox.
like what you see? refer a friend to TWR and receive groovy thank you gifts! congrats to reader N.K. for being the first subscriber to earn our homemade chocolate chip cookies. she does live like two thousand miles away in india, but that’s the distance we’ll go for our readers 😉.
big idea: china’s digital currency is taking off
china appears to be expanding its pilot of a government-run digital currency, called eCNY. first launched a year ago, 100,000 chinese citizens have been paying for their bubble tea with an app run by the central bank. instead of paying with cash yuans from their wallets, people pay with virtual yuans from their phones. one cash yuan is exactly equal to one virtual yuan in value, and theoretically could be exchanged.
china is the first major economic power to start such a currency, well ahead of rivals. the US has just done basic research and is years away from a pilot of this scale.
arguably, china’s effort isn’t quite cryptocurrency - it doesn’t use blockchain for security and isn’t decentralized at all. every transaction goes through china’s central bank for verification. like cash, the eCNY essentially eliminates middlemen in financial transactions, like debit/credit card processors and private banks or credit unions.
there are some china-specific reasons for why they’re in such a rush to launch a virtual currency, but their pilot highlights a danger of such efforts. their central bank can track every single transaction through the eCNY app, a level of surveillance unparalleled in history. government digital currencies will be convenient, but cannot come at the cost of privacy.
story to watch: yellen for global minimum tax
treasury secretary Janet Yellen called for a corporate minimum tax rate among G-20 nations of 21%. Joe wants to raise the business tax rate to 28% in the US to fund his infrastructure plans (after He-Who-Must-Not-Be-Named cut it from 40% to 21%).
negotiations have been ongoing for years among the world’s biggest economies, but Janet coming out in favor of them are a big boost. countries have been engaged in a ‘race to the bottom’ for decades, trying to entice companies to pack up and move headquarters with lower tax rates. the only short-term beneficiaries to such schemes are the tax haven countries with the lowest rates - ireland has just a 12.5% business tax. where do you think those leprechauns get all their gold from?
we’ll see what happens here, but it’s unlikely countries will agree to a number as high as 21%. everyone’s finally realizing that cutting corporate taxes hurts everyone in the long-term as the tax base is eroded.
this week’s image: easter at the white house
(The Atlantic) a bunny was caught attempting to impersonate the white house press secretary on easter monday. Joe...
like what you see? refer a friend to TWR and receive groovy thank you gifts! congrats to reader N.K. for being the first subscriber to earn our homemade chocolate chip cookies. she does live like two thousand miles away in india, but that’s the distance we’ll go for our readers 😉.
big idea: china’s digital currency is taking off
china appears to be expanding its pilot of a government-run digital currency, called eCNY. first launched a year ago, 100,000 chinese citizens have been paying for their bubble tea with an app run by the central bank. instead of paying with cash yuans from their wallets, people pay with virtual yuans from their phones. one cash yuan is exactly equal to one virtual yuan in value, and theoretically could be exchanged.
china is the first major economic power to start such a currency, well ahead of rivals. the US has just done basic research and is years away from a pilot of this scale.
arguably, china’s effort isn’t quite cryptocurrency - it doesn’t use blockchain for security and isn’t decentralized at all. every transaction goes through china’s central bank for verification. like cash, the eCNY essentially eliminates middlemen in financial transactions, like debit/credit card processors and private banks or credit unions.
there are some china-specific reasons for why they’re in such a rush to launch a virtual currency, but their pilot highlights a danger of such efforts. their central bank can track every single transaction through the eCNY app, a level of surveillance unparalleled in history. government digital currencies will be convenient, but cannot come at the cost of privacy.
story to watch: yellen for global minimum tax
treasury secretary Janet Yellen called for a corporate minimum tax rate among G-20 nations of 21%. Joe wants to raise the business tax rate to 28% in the US to fund his infrastructure plans (after He-Who-Must-Not-Be-Named cut it from 40% to 21%).
negotiations have been ongoing for years among the world’s biggest economies, but Janet coming out in favor of them are a big boost. countries have been engaged in a ‘race to the bottom’ for decades, trying to entice companies to pack up and move headquarters with lower tax rates. the only short-term beneficiaries to such schemes are the tax haven countries with the lowest rates - ireland has just a 12.5% business tax. where do you think those leprechauns get all their gold from?
we’ll see what happens here, but it’s unlikely countries will agree to a number as high as 21%. everyone’s finally realizing that cutting corporate taxes hurts everyone in the long-term as the tax base is eroded.
this week’s image: easter at the white house
(The Atlantic) a bunny was caught attempting to impersonate the white house press secretary on easter monday. Joe...