Germany declares Bitcoin is a Private Currancy

CoinDesk has reported that the German ministry of finance has given Bitcoin official recognition.

“The German Ministry of Finance does not classify bitcoins as e-money or as a functional currency, they cannot be regarded as a foreign currency. Nevertheless they have to be subsumed under the German term of ‘Rechnungseinheit’ as a financial instrument,” Martin Chaudhuri, of  Bundesministerium der Finanzen, told CoinDesk.

It is an amusing idea to think that Bitcoins aren’t an e-money, still we should be thankful that one of the state’s has finally made some movement regarding crypto-currencys. For those wanting states to stay out of their cultural revolution this may appear as bad news but as an individual considering crypto-currancies as a technology to assist my business it’s great.

Among my colleagues we refer to these alternate currencies as “units of value” which is exactly what Germany’s financial regulator BaFin decided they were what else could they be?

“Greiner believes these developments will raise the standards within the bitcoin space significantly as the companies involved are now regarded as financial services companies and must fulfil strict standards of operation. For example, companies are required to have an initial capital of 730,000 euros, certain professional qualifications of management and must report to BaFin.” Stefan Greiner, of German law firm Xenion Legal

With Germany leading the field (in term’s of governments) we may see State’s across the globe offering some legitimacy and stability to those businesses interested in the future of crypto-currancies and peer to peer online transactions.

This might be behind the current price boom in Bitcoin’s. Glad I have a few crypto’s stashed for keeping.

Original Article Here.

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