Many people countries and even experts have been arguing on whether Bitcoin is an asset or a currency. The discussion went on even at the G20 summit in Argentina. However, an answer may have been found after a Dutch court classified Bitcoin as a transferable value. The Dutch court ruled in favor of a person who was owed 0.591 BTC according to the court documents.
The hearing started after a case was filed by J.W de Vries on February 2nd against a not public company called Koinz Trading BV. The trading company was ordered to pay mining fees which amounted to 0.591 BTC to the petitioner or face a penalty of more than 10,000 euros. The Netherland’s court ordered the company either to pay the amount or be declared insolvent.
According to the judgment by the court, Bitcoin demonstrates all the characteristic of property and claims to transfer BTC fall under property right. According to the court:
“It’s true that Bitcoin exists. According to this law court, it exists from a unique encrypted series of numbers which are stored in the hard drive on the right-holder’s computer. Bitcoin operates by sending it from one wallet to another. They operate as standalone value files which are directly delivered by a payer after a transaction. This shows that Bitcoin represents a value and it’s transferable. In our view, we, therefore, treat it the same as property. By that, a claim for Bitcoin payment is, therefore, to be viewed as a claim that qualifies for verification.”
The court after the review and presentations by both parties found that there was a contract between Koinz Trading BV and Mr. Vries. It, therefore, ruled that since the original transaction was taken in Bitcoin, the amount should be returned in the same currency. According to the court, the relationship is a civil obligation to pay.
As much as the court is making good steps in making sure that digital currencies are recognized as currencies there are organizations that do not approve that. The G20 FSB released a document in which they stated that they consider crypto as an asset. According to the document digital currencies lack the characteristics of sovereign currencies.
A month ago Mark Carney who is the governor of the Bank of England said that: “Digital currencies have so far failed in the traditional aspects of money. This means that it’s not a store of value and more to that nobody uses it as a medium of exchange.