Bitcoin becomes a Legal Tender in Germany

21 November 2013 |

rsz_bitcoin-stockThis 2013 excerpt of CNBC, Aug 19, is by Matt Clinch.

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

Bitcoin 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 œprivate money that can be used in œmultilateral clearing circles, the Ministry said.

œWe 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 parliaments Finance Committee, who has pushed for legal classification of bitcoins.