Posted by: John Vandivier | August 17, 2013

Europe Online Magazine: German Finance Ministry recognizes bitcoin as currency

Source – Europe Online Magazine – 8/17/13

[From John: This article is big news friends! The implications of any sovereign body recognizing bitcoin as a currency are huge, and the impact is even more positive when it is a major and well-reputed economic powerhouse such as Germany. Also see related articles where you will note that a US judge recently ruled bitcoin is a currency as well, although one rogue US judge hardly makes it an official US precedent – yet.

Finally, please note that the article is written exactly as originally published, but the original article contained two errors. See the bottom of the page where I correct those.]

Frankfurt (dpa) – Key aspects of the bitcoin, a popular online currency, have been recognized for legal and tax purposes by Germany, newspapers reported Saturday.

The recognition, which was laid out in a Finance Ministry response to a query from a member of parliament, means Germany recognizes the online currency as a “currency unit” and “private money,” reported the Frankfurter Allgemeine Zeitung and the Neue Osnabruecker Zeitung.

Bitcoins have been a popular form of payment among netizens since 2009 although economists question their viability because they are backed by neither a government nor a central bank.

An overseer group called the Bitcoin Foundation limits the total number of currency units to 21 billion, but it has been unable to avoid sharp fluctuations as it grows more popular.

Currently, 1 bitcoin is valued at about 110 dollars, according to online currency conversion site xe.com, which also states that the currency is currently not recognized by any national government.

Source: http://en.europeonline-magazine.eu/reports-german-finance-ministry-recognizes-bitcoin-as-currency_293511.html

[From John: Please note that the article is written exactly as originally published, but the original article contained two errors:

  1.  The total limit of bitcoins in circulation will be 21 million, not 21 billion as mentioned.
  2. The Bitcoin Foundation does not limit the number of coins in circulation. Bitcoin is entirely devoid of centralized control other than the program itself. The 21 million coin limit is built into the bitcoin software.]
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Responses

  1. Thanks for the news. Two corrections though:
    – the total limit of Bitcoins in circulation will be 21 *million* (not billion)
    – It’s not the Bitcoin Foundation who limits it, but the currency itself – the limit is built into the Bitcoin software, and there is no single entity who could change it / print more of it.

  2. […] by TheJohnVandivier [link] […]

  3. […] by TheJohnVandivier [link] […]

  4. […] Europe Online Magazine: German Finance Ministry recognizes bitcoin as currency(caeconomics.wordpress.com) Source – Europe Online Magazine – 8/17/13 [From John: This article is big news friends! The implications of any sovereign body recognizing bitcoin as a currency are huge, and the impact is even more positive when it is a major and well-reputed economic powerhouse such as Germany. Also see related articles where you will note that a US judge… […]

  5. […] …any sovereign body recognizing bitcoin as a currency are huge, and the impact is even more positive when … that a US judge recently ruled bitcoin is a currency as well, although one rogue US judge hardly makes…See all stories on this topic […]


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