Germany recognises Bitcoin as currency

Key aspects of the bitcoin, a popular online currency, have been recognized for legal and tax purposes by Germany, newspapers reported Saturday.

The recognition, which was laid out in a Finance Ministry response to a query from a member of parliament, means Germany recognizes the online currency as a “currency unit” and “private money,” reported the Frankfurter Allgemeine Zeitung and the Neue Osnabruecker Zeitung.

Bitcoins have been a popular form of payment among netizens since 2009 although economists question their viability because they are backed by neither a government nor a central bank.

An overseer group called the Bitcoin Foundation limits the total number of currency units to 21 billion, but it has been unable to avoid sharp fluctuations as it grows more popular.

Currently, 1 bitcoin is valued at about 110 dollars, according to online currency conversion site xe.com, which also states that the currency is currently not recognized by any national government.

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Germany recognises Bitcoin as currency