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Bitcoin-Like Cryptocurrencies Are Not Real Money: German Parliament
NEWS
October 29  |  2 min read

German Lawmakers Pronounce Cryptocurrencies Such as Bitcoin and Stablecoins Not Real Money

The COIN360 Editorial Team

On October 28, 2019, the German parliament issued a statement in which it declared that cryptocurrencies such as Bitcoin (BTC) are not real money. According to the newly published official position, digital assets like Bitcoin, stablecoins, and other cryptocurrencies have very few tangible features that fiat currencies normally provide: they are neither a store of value nor a payment instrument.

The statement contains the following basic definition of money: exchange and means of payment, store of value, and unit of account. The lawmakers concluded that the volume of payments in crypto is several orders of magnitude lower than that of traditional currencies.

The group that labored to prepare the clarification also believes that the wide rate fluctuations typical of the cryptocurrency market make Bitcoin and other cryptocurrencies a bad choice for being a store of value. Although the statement admits that stablecoins are designed to solve this issue, the government nevertheless intends to forbid their adoption as it sees them as a threat to the existing monetary system.