According to Bitcoinist reported on March 7, a French court ruling acknowledged the value of Bitcoin and showed that Bitcoin can be used as compensation for money.
(Image source: express.co)
French court says Bitcoin is similar to currency
A verdict from a French court has made the claim that bitcoin is worthless again untenable. A ruling by Nanterre Commercial Court on February 26 stated that Bitcoin and digital assets are alternative assets, just like currency.
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According to the French court, Bitcoin is substitutable and interchangeable, and it has monetary characteristics. In theory, all Bitcoins are the same, but after analyzing the data on the chain, people can still distinguish different Bitcoins. This feature is not uncommon for currencies, as each banknote has a unique serial number, which will not affect its value.
The Echo newspaper quoted lawyer Hubert de Vauplane as saying:
The scope of this decision is considerable because it allows Bitcoin to be considered a currency or other financial instrument. As a result, it will facilitate Bitcoin transactions, such as growing loan or repo transactions, which will facilitate the liquidity of the cryptocurrency market.
However, the French court's decision is not the same as French law's definition of Bitcoin. It is not illegal to trade bitcoin in France, but the country's laws generally follow the European Central Bank (ECB) view that digital assets are not currencies. The reason for this is that Bitcoin is not issued by the central bank, and it is not controlled by the basic principles of monetary policy.
Court acknowledges Bitcoin as valuable asset
But in multiple court cases, Bitcoin is considered a valuable asset, such as collateral or collateral. Bitcoin has also been used to pay legal fees to lawyers.
In the United States, whether certain cryptocurrencies are treated as securities is one of the most important legal issues for a court to decide. Under US law, securities sales must be registered with the US Securities and Exchange Commission. If the court rules that the token is a security, this means that any sale of the token, such as an initial coin offering (ICO), is illegal.
A controversial issue in the UK is whether bitcoin constitutes "property" or "information". If the court decides that bitcoin is "property," they can more easily hunt down criminals and return the stolen bitcoin to their original owners. If the court decides it is "information", then in some cases, it will be more difficult for victims of stolen cryptocurrencies to get their money back.
The idea of whether Bitcoin is a currency is sometimes overlooked by the cryptocurrency community, as digital currencies are often viewed as a substitute for fiat currencies. But getting mainstream authorities to recognize the value of Bitcoin and its use cases as a means of payment is a step forward in its adoption.
Bitcoin and some altcoins are also considered valuable. An example of that is QuadrigaCX, the cryptocurrency in the exchange's wallet is used to pay and compensate creditors. In most exchange hacking incidents, the theft of digital assets is also considered a major property loss.
At this stage, the main disadvantage of Bitcoin as digital cash for consumption is its huge price volatility. Bitcoin has recently risen from a low of around $ 8,500 to $ 9,130, and this volatility may pose a risk to merchants.