Germany recognises Bitcoin as legal tender

Germany leads the way as it becomes the first nation to accept Bitcoin.

Bitcoin has begun to impact on the global financial markets as the German treasury announced that the currency is now recognised. According to German newspaper Frankfurter Allgemeine Zeitung, the virtual currency is legally and fiscally approved and "as a unit of account."

The move came as Frank Schaeffler, a deputy of France’s finance committee, announced it would be approved after he queried the national Finance Ministry.

"For the first time, the federal government recognises Bitcoins as private money," said Schaeffler.

Under Bitcoin’s recognition, as much as 25 percent of commercial profits made through the digital currency's transactions may be taxable; however, personal transactions are tax-free. The unforeseen move suggests that other nations may begin to take a similar approach to the "crypto-currency," which the company hopes will make way for a "wide range of possibilities for years to come."

The decision is a welcome one for its supporters, after a series of setbacks over the years has seen the value of the Bitcoin plummet. While it was ruled illegal in Thailand last month, Bitcoin hopes that it will become more accepted by nations as a "neutral global currency."

At the time of writing, one Bitcoin is worth US $119.55, 89.73 or £76.44 according to Mt.Gox

Source: Die Welt | Image via Slate

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14 Comments

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Governments tend to go with whatever brings in the tax money. Without a backing, I wouldn't put a lot of value into it. If someone figures out how to hack the system and flood the market, it could suddenly become worthless.

The fact that one can "mine" bitcoins makes it seem too far removed from genuine currency which, while fiat in nature, is still regulated. Bitcoin is likely headed toward a bubble that bursts with the energy of a pyramid scheme.

seeprime said,
The fact that one can "mine" bitcoins makes it seem too far removed from genuine currency which, while fiat in nature, is still regulated. Bitcoin is likely headed toward a bubble that bursts with the energy of a pyramid scheme.

Bitcoin, with it's unique identifier per coin, it's also regulated.

the proper comparison to BitCoins is not fiat currency but gold,
that because each BitCoins unit (BTC) are backed by unique hashes.

This make BTC less prone to supply manipulation unlike how it always was with fiat currency.
Stuff like Obama can't do 'quantitative easing' with bitcoins.

It's not really like gold, unless alchemists have found a way to create it. Gold is a real, rare material. Bitcoins are some make believe thing purported to have value, where they're generated by the people who got "in" on it early. Everyone else can get like a small fraction of a coin, worth about $10, by wasting $100 in electric bills. If this is the future of currency, it makes the world's current wealth distribution look great in comparison.

I guess they've done this for the tax because of the high cost of bitcoins but better to be legal there now, will be interesting to see what happens elsewhere.