Germany Recognizes Bitcoin as Currency

[IDefendThePlatform]

[h=1]Germany recognises Bitcoin as currency[/h]
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.

http://mybroadband.co.za/news/internet/84633-germany-recognises-bitcoin-as-currency.html

 

[IDefendThePlatform]

http://www.theverge.com/2013/8/19/4...coin-paves-the-way-for-a-licensed-exchange-EU

 

[idiom]

Bitcoin recognized by Germany as legal tender

Holy Cow. This is pretty Epic.

Virtual currency bitcoin has been recognized by the German Finance Ministry as a "unit of account", meaning it is now legal tender and can be used for tax and trading purposes in the country.

Bitcoins is not classified as e-money or a foreign currency, the Finance Ministry said in a statement, but is rather a financial instrument under German banking rules. It is more akin to "private money" that can be used in "multilateral clearing circles", the Ministry said.

"We should have competition in the production of money. I have long been a proponent of Friedrich August von Hayek scheme to denationalize money. Bitcoins are a first step in this direction,"said Frank Schaeffler, a member of the German parliament's Finance Committee, who has pushed for legal classification of bitcoins.

http://www.cnbc.com/id/100971898

And here everybody was assuming they would move back to the Mark after the Euro...

"I think it is interesting that Germany has gone ahead and given legal status to the bitcoin, as it could become an alternative to the euro if the single currency ever ceased to exist," Brooks said. "If the euro does go belly up the German authorities could potentially still collect tax if everyone started using the bitcoin - that's a good example of German forward-thinking!"

 

[Keith and stuff]

Very sad news

 

[Schifference]

Recognize & Tax

 

[IDefendThePlatform]

Very sad news

If you're saying you would've rather they just ignored it then I totally agree. But since it seems unlikely they'd ignore it indefinitely I'd rather see this than subpoenas like in the US. Or are you thinking this is just a prelude to a German govt attack on bitcoin?

 

[willwash]

How do you tax Bitcoin? Isn't it impossible to prove ownership? Isn't it impossible for the government or anyone else to just deduct your Bitcoins?

What's next? Truth serum and polygraphs for IRS agents?

 

[enter`name`here]

How do you tax Bitcoin? Isn't it impossible to prove ownership? Isn't it impossible for the government or anyone else to just deduct your Bitcoins?

The weak point is the exchanges. Eventually buying and selling bitcoins will require as much proof of identity as tradig stocks. Of course once you buy some bitcoins its possible to "launder" them to make it hard to prove who currently owns them, but if you buy 10000 worth of bitcoins and then claim you dont own any for tax purposes i am sire the irs will have questions. Just some food for thought, i do believe bitcoins can provide more freedom and privacy then the current system, but its not a cloaking device.

 

[FSP-Rebel]

There was some articles a week or two ago w/ the German govt saying that any coins mined or kept for a year or more won't be taxed. While some of this govt involvement may curb the more private aspects of the payment/currency system, it will undoubtedly mainstream it for more audiences. Prepare for launch.

 

[Keith and stuff]

If you're saying you would've rather they just ignored it then I totally agree. But since it seems unlikely they'd ignore it indefinitely I'd rather see this than subpoenas like in the US. Or are you thinking this is just a prelude to a German govt attack on bitcoin?

In New Hampshire, the first place in the world, you can donate bitcoins to political candidates, but bitcoins aren't taxed. That's what I'd rather. The new Germany system might be inferior to the already established New Hampshire system. https://bitcointalk.org/index.php?topic=99968.0

 

[hazek]

Of course bitcoins can be taxed just like cash. But just like cash, profits gained from transacting with bitcoins can be easily hidden.


Who cares if the man wants his money if it's easy for you to hide it?