Bitcoin Moves From Commodity To Payment Currency
Bitcoin is becoming an actual currency for everyday use among consumers more than a traded commodity, according to recently released BitPay research. The data indicated the total number of bitcoin transactions more than doubled last year. The value of the average bitcoin order fell by almost half, the research found. This finding reflects increasing bitcoin use as a method of payment among merchants and consumers. Technology acceptance drives consumer use. Wouter Vonk, BitPay's European marketing manager, said BitPay expects more consumers to use bitcoin for currency as the technology....
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Finland's central bank has deemed bitcoin to be a commodity, following a determination that it does not meet the definition of a currency, or even an electronic payment method. "Considering the definition of an official currency as set out in law, it's not that. It's also not a payment instrument, because the law stipulates that a payment instrument must have an issuer responsible for its operation," said Paeivi Heikkinen, who heads the oversight division at the Bank of Finland. "At this stage it's more comparable to a commodity." The news comes as an increasing number of central banks....
Bitcoin has been classified as a commodity in Finland after the Scandinavian country's central bank declared that it did not meet the definition of a currency. The Bank of Finland concluded that bitcoin simply doesn't meet the legal conditions required to be considered a form of electronic payment, either. Paeivi Heikkinen, head of oversight at the bank, told Bloomberg that bitcoin was more comparable to a commodity at this point. "Considering the definition of an official currency as set out in law, it's not that. It's also not a payment instrument, because the law stipulates that a....
Bitcoin’s status as either a currency or a commodity is at the center of a California lawsuit between a bitcoin mining computer company and a person the company paid to promote it, according to The Recorder, a California legal and technology newspaper. Marc Lowe, a California doctor, received payment in bitcoin to promote HashFast Technologies’ bitcoin mining computer. HashFast Technologies filed for bankruptcy in 2014 and its bankruptcy trustees claim the doctor was overpaid and want him to return the payment of 3,000 bitcoin, now worth $1.2 million. They argued bitcoin is a commodity....
Much like gold, oil, or soybeans, Bitcoin is now officially considered a commodity. The agency that regulates the US commodity trading market, the Commodity Futures Trading Commission (CFTC) has finally recognized the digital currency as a commodity. The debate on bitcoin can be defined as a commodity or not as been here for quite some time and the FCTC. By officially recognizing the digital currency as a commodity the CFTC assures its authority to supervise the trading of digital currency futures and options, which will now be subject to the agency's regulations. If there is any....
The Bank of Finland has decided that Bitcoin has failed the currency test. "The Currency Test" as it is referred to by banks and governments around the world in regards to Bitcoin has differing meanings wherever it is cited. Bitcoin's rise to the top is tumultuous indeed. In an interview with Bloomberg's Kati Pohjanpalo, Paeivi Heikkinen, the head of oversight over at the Bank of Finland, stated: "Considering the definition of an official currency as set out in law, it's not that. It's also not a payment instrument, because the law stipulates that a payment instrument must have an issuer....