Retirement Fund Loans Approved by IRA
Bitcoin Individual Retirement Accounts, more formally known as the IRA, is enabling their customers to loan out retirement funds on an interest rate. This information comes from the CEO, who noted the new feature would be available for several months going into 2020. Genesis Trading is operating the interest accounts for IRA Users. Both the IRA and Genesis have partnered with each other to provide interest services on an array of blockchains. Those include the Litecoin, Bitcoin, Zcash, Ethereum and XRP Token. It hasn’t been revealed what the minimum and maximum interest on accounts will be for IRA Members.
The program is opening on November 1st, 2019 and will run until May 1st, 2020. This service is being managed under the first-come, first-serve basis. This means there are a limited number of interest accounts available, with the rate being determined by the loaned coins valuation and the length of the contract. Bitcoin Individual Retirement Account Int’ hasn’t provided an exact limit.
The Chief Executive Officer at Bitcoin IRA International, Chris Kline, spoke on the announcement. He stated: “We’re breaking new ground here, and we want to make sure clients understand everything and that it works well. We’ll be able to offer more details on interest yields when we have an actual result. You’ll see some groups offer up to 8 to 12% interest. They often have asterisks next to those numbers. Those rates are more in the 2 to 4% range. You’ll see someone deploy a 12% rate on bitcoin for three days.”
Partnering with Genesis Trading is a part of Bitcoin IRA Internationals goal to provide better services to traders. This partnership could assist the exchange with eliminating wallet and custodial fees for clientele. The considerable track record that Genesis has for maintaining retail clients and traders is what prompted IRA International to partner with the group. In comparison, Genesis has processed $2.3 Billion in crypto payment. Bitcoin IRA has processed only $350 Million. Working with Genesis Trading will surely Benefit the cryptocurrency retirement account service.
This isn’t the first time that the two companies have interacted with one another. Before this partnership, Bitcoin IRA International worked with Genesis Gaming to provide enhanced over-the-counter trading products and desks. However, this partnership might be overseen by the fact that Bitcoin IRA is currently defending themselves in court against Kingdom Trust. The Kentucky-Established Custodian Firm, Kingdom Trust, issuing the IRA for what they claim are illegal pension plans. The American Custodian Firm believes that the International Retirement Account service used deceptive strategies to switch services. The American Custodian Firm also operates retirement accounts that have proven to be less popular than Bitcoin IRA’s.
The Co-Head of Sales at Genesis, Martin Garcia, spoke about the IRA. He Stated: “They are the largest digital IRA provider that we are aware of, and I think that we always want to be working with the leaders in the space.”
The President and Chief Executive Officer at Kingdom Trust, Jason Anderson, spoke on his concerns regarding the IRA. He stated: “Clients have been surprised to find that their account is being transferred to a new custodian. In a lot of cases, clients have chosen to reverse that decision.”
The Outcome & Future
The Kentucky Federal Courts have dismissed the lawsuit created by Kingdom Trust. It was revealed that their claims were prejudice and unfounded. Bitcoin IRA responded to this decision by filing a motion to South Dakota for a countersuit. This countersuit will be for the legal costs that Bitcoin IRA faced. Since the Bitcoin Retirement fund knew they weren’t breaking the law, new products and services never stopped releasing. Since the outcome of this lawsuit, it’s been revealed that the Bitcoin IRA will implement face recognition technologies. This technology will be used for facial recognition logins and cryptocurrency swamps.
Bitcoin IRA International is now looking into the future. This exchange plans to make their services more widely available to worldwide customers, while also removing their account minimum of $3,000.00. It’s also rumoured that Bitcoin IRA International will use a new automatic monthly savings plan. However, that savings plan hasn’t been confirmed by the exchange.