They haven't declared it legal tender, but they have declared it private money.
http://rt.com/news/bitcoin-germany-recognize-currency-641/
I think that's the most we could ever hope for, because the state hates the idea of losing power over the creation of it's own currency.
Topic: Country XXXX declares Bitcoin legal tender. What happens next? - page 2. (Read 9914 times)
What would the incentive be for a country to declare Bitcoin legal tender?
I don't see any benefit to a very large country like the USA, but perhaps for a very small country there would be a benefit.
Would it make it easier for Bitcoin exchanges or other Bitcoin service companies to set up shop in this small country and then do business all over the world?
Would the country then be able to reap a benefit from taxes on these companies. The companies will have to pay taxes anyway to some country. Why not to the country that declared Bitcoin a legal tender.
I don't see any benefit to a very large country like the USA, but perhaps for a very small country there would be a benefit.
Would it make it easier for Bitcoin exchanges or other Bitcoin service companies to set up shop in this small country and then do business all over the world?
Would the country then be able to reap a benefit from taxes on these companies. The companies will have to pay taxes anyway to some country. Why not to the country that declared Bitcoin a legal tender.
The declaration of legal tender would apply only to that country and only in a very limited scope.
That's not quite true. A country declaring Bitcoin as a legal tender would affect Bitcoin under many laws in the U.S. that apply to the legal tender of a foreign nation. For example, FinCEN would regard Bitcoin as a "real" currency and no longer a "convertible virtual" currency:
Quote from: http://www.gpo.gov/fdsys/pkg/CFR-2011-title31-vol3/pdf/CFR-2011-title31-vol3-sec1010-100.pdf
(m) Currency. The coin and paper money of the United States or of any other country that is designated as legal tender and that circulates and is customarily used and accepted as a medium of exchange in the country of issuance.
If some helpful country did that it would probably come as a relief to a lot of tax authorities and financial regulators, because it would allow them to stick bitcoin in a pre-existing box (foreign currency) that fits it pretty well for most practical purposes, but that they may not currently be technically allowed to put it in under existing legislation.
Good point.
Ironically is that happened it would reduce regulation as Dealer if Foreign Currency is generally less regulated at the state level than money transmitters. Come on Somalia make Bitcoin your legal tender.
Ironically is that happened it would reduce regulation as Dealer if Foreign Currency is generally less regulated at the state level than money transmitters. Come on Somalia make Bitcoin your legal tender.
The declaration of legal tender would apply only to that country and only in a very limited scope.
That's not quite true. A country declaring Bitcoin as a legal tender would affect Bitcoin under many laws in the U.S. that apply to the legal tender of a foreign nation. For example, FinCEN would regard Bitcoin as a "real" currency and no longer a "convertible virtual" currency:
Quote from: http://www.gpo.gov/fdsys/pkg/CFR-2011-title31-vol3/pdf/CFR-2011-title31-vol3-sec1010-100.pdf
(m) Currency. The coin and paper money of the United States or of any other country that is designated as legal tender and that circulates and is customarily used and accepted as a medium of exchange in the country of issuance.
None of those things.
The declaration of legal tender would apply only to that country and only in a very limited scope.
In the US legal tender means it can be used to pay debts, damages awarded by courts are denominated in legal tender, and legal tender is only accept method to pay tax liabilities. Nothing more.
Outside of that extremely small scope you can use other currencies in the US. For example a shop in the US could accept Euros, pay customers in Euros, issue invoices in Euros, have Euro denominated bank accounts, etc. A shop can even refuse to accept payment in US dollars (but not for debt).
So legal tender has a very limited scope and Bitcoin could (not saying it will) become the most used currency in the world without being legal tender in any nation.
The declaration of legal tender would apply only to that country and only in a very limited scope.
In the US legal tender means it can be used to pay debts, damages awarded by courts are denominated in legal tender, and legal tender is only accept method to pay tax liabilities. Nothing more.
Outside of that extremely small scope you can use other currencies in the US. For example a shop in the US could accept Euros, pay customers in Euros, issue invoices in Euros, have Euro denominated bank accounts, etc. A shop can even refuse to accept payment in US dollars (but not for debt).
So legal tender has a very limited scope and Bitcoin could (not saying it will) become the most used currency in the world without being legal tender in any nation.
Perhaps this has already been discussed.
I could not find the right search words to locate it if it has, so please excuse the question and point me to the post.
There are a lot of small countries (Islands mostly) that have multiple currencies as their legal tender. Ascension Island has for example the Ascension Pound and the Saint Helena Pound as their legal currency. Their main product is the selling of WEB domains and Stamps (according to Wiki).
What if a similar country declared Bitcoin a legal currency. What would happen?
Do other nations have to honor the currency of the country?
Do the banks in other nations then have to honor accounts holding Bitcoin?
Would the country declaring Bitcoin legal tender have any advantages concerning Bitcoin exchanges?
Is this even possible?
I could not find the right search words to locate it if it has, so please excuse the question and point me to the post.
There are a lot of small countries (Islands mostly) that have multiple currencies as their legal tender. Ascension Island has for example the Ascension Pound and the Saint Helena Pound as their legal currency. Their main product is the selling of WEB domains and Stamps (according to Wiki).
What if a similar country declared Bitcoin a legal currency. What would happen?
Do other nations have to honor the currency of the country?
Do the banks in other nations then have to honor accounts holding Bitcoin?
Would the country declaring Bitcoin legal tender have any advantages concerning Bitcoin exchanges?
Is this even possible?
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