Is Tesla against the law for Bitcoin payments?

After launching a campaign of 1.9 trillion USD to stimulate economic demand after the pandemic, many sources said that the US is still cherishing a new plan, worth up to 3 trillion USD. Since March last year, the government has “discharged” more than 5 trillion USD, causing unpredictable negative effects on the global economy.

The US economic stimulus plan in 2021 is expected to accelerate the depreciation of the dollar, possibly pushing the world into “hyperinflation”. In that context, billionaire Elon Musk has officially confirmed that he will allow the use of Bitcoin to buy Tesla cars, on the one hand to solve this pressing problem, as well as reduce dependence on the dollar.

According to the latest information, Tesla currently only assists US customers to use Bitcoin for payments and to consider future market expansion. Elon Musk also confirmed that Bitcoin payments will be available outside of the US later this year, declaring that the number of Bitcoins that customers pay for Tesla will still be Bitcoin and will not be converted to currency. corresponding.

Bitcoin is being accepted for the first time to buy cars

For the first time virtual money becomes a payment method for buying a car. In its annual report submitted to the US Securities and Exchange Commission last month, Tesla confirmed it had bought $ 1.5 billion in Bitcoin. Tesla also said it hopes to start accepting Bitcoin as a payment method for all product transactions in the near future.

By 2020, the growth rate of Bitcoin will exceed 300%, and Tesla’s interest in Bitcoin keeps the virtual currency going. Although Wall Street believes Bitcoin has a serious bubble and overvalued value, mainstream investors’ interest in investing in Bitcoin is growing.

As one of the world’s most valuable tech companies, Tesla advocates holding non-traditional currencies as part of its assets. Elon Musk recently told Clubhouse that the cryptocurrency is “on track to be widely accepted by traditional financial experts” and that he also affirms himself as a Bitcoin advocate.

However, Tesla once admitted that carmakers holding Bitcoin are exposed to great risks because of their broader volatility than some traditional currencies or other short-term investments. “In the long run, it is unpredictable that Bitcoin will be accepted by investors, consumers and companies,” Tesla said, adding that there is a risk of “malicious and outdated attacks. technology “in holding Bitcoin.

Many legal risks

The adoption of Bitcoin as a direct payment method will be a major milestone. So far, although some merchants accept Bitcoin as a payment method, they require buyers to exchange Bitcoin for USD or other currencies before transferring it to the seller.

Experts believe that Tesla’s innovation may be that in the future, they will eliminate the “middleman” and create their own currency processing system to accept payments in Bitcoin, as well as delete them as needed. set. In other words, consumers can move Bitcoin directly into Tesla’s system, and Tesla will choose to keep Bitcoin or liquidate it. This move by Tesla could split the “pie” of the dollar, which is expected to undermine the position of the currency on a global scale.

At the moment, Bitcoin has no legal status like currency, and cannot be used in financial markets. Besides, many countries do not yet have clear laws that apply to cryptocurrencies or regulations that payment institutions are not allowed to conduct transactions related to Bitcoin.

According to the above, financial institutions are not allowed to provide customers with services such as Bitcoin registration, transaction, clearing, accepting Bitcoin or using Bitcoin as a payment tool or performing transactions. exchange between Bitcoin to currency; carry out Bitcoin storage, custody, mortgage, and issuance of financial products related to Bitcoin; Using Bitcoin as an investment target of investing in a trust fund …

Therefore, “if buyers or financial institutions provide payment services in Bitcoin, they can face illegal by anti-money laundering regulations”, an industry expert confirmed.