Germany endorses Bitcoin

Source:CNTV Published: 2013-11-20 14:11:40

Germany’s Ministry of Finance recently endorsed Bitcoins as private money, making it the first country to legally accept Bitcoins. The Cryto-currency is expected to be governed under the same fiscal and legal rules as the Euro.

It’s official. Digital currency Bitcoins are now accepted as a form of money in Germany. They are considered "units of account" , which means people can use Bitcoins to make transactions.

"Bitcoins are not yet legitimate, but Federal Ministry of Finance acknowledge them as private money. It means you can buy goods and services with them in Germany. "said Oliver Flaskaemper, Director of Bitcoin.DE.

German bank Fidor recently endorsed the biggest Bitcoin trading platform Bitcoin.De to be the agency for the bank’s Bitcoin trading business. The government can now charge capital gain tax on trading profits. Bitcoin users would now pay sales tax (VAT) as well.

"The bank authorised us to be the first trading platform, this puts us under the supervision of this bank. And this bank is under guidance of the Federal Ministry of Finance. This indirect supervision would then pass to the whole country." Flaskaemper told the reporter.

But Bitcoin speculators worry going official opens the door for greater regulation. A big part of the allure of Bitcoin is its lack of government ties, which made it insulated to government interference.

Posted in: Economy

blog comments powered by Disqus