Germany recognized bitcoin as legal tender

Germany recognized bitcoin as legal tender

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The Ministry of Finance of Germany signed a decree recognizing bitcoin as legal tender. The document specifies that purchases made for cryptocurrency are not taxed, Cointelegraph writes.

The decision was signed on Tuesday, February 27, and it cites the decision of the European court of 2015, which determined bitcoin currency in terms of taxation and abolished value-added tax when buying goods and services using cryptocurrency.

It should be noted that the European Court’s decision allows for a divergence of views of the EU states on the essence and regulation of the cryptocurrency. Each country can have its own opinion as to what bitcoin is: currency or commodity.

Germany now officially determines bitcoin currency – as noted in the Finance Ministry’s decree, cryptocurrencies become the equivalent of legal means of payment, as they are used by transaction participants as an alternative contractual and immediate way of payment.

It is noteworthy that earlier this year the head of the Bundesbank Joachim Wurmeling stated that digital currencies like bitcoin should be regulated by a set of international rules, and not at the level of individual nations.

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