Information on the status of the euro as legal tender in the euro area and its practical use as a national currency. Within the euro area, only the euro is legal tender. Article 128(1) TFEU establishes the legal tender status of euro banknotes and Article 11 of Regulation (EC) No 974/98 as regards euro coins. This means that in the absence of an agreement on the means of payment, the creditor is obliged to accept a payment made in euros, which then releases the debtor from his payment obligation. On September 7, 2021, El Salvador will become the first sovereign country to use Bitcoin as unlimited legal tender. This important decision comes after lawmakers in the Central American country`s legislature voted by a « supermajority » in favor of the Bitcoin law in early June. The U.S. dollar remains El Salvador`s official currency and the country`s reference currency for accounting purposes. Bitcoin will be legal tender alongside the United States. dollars, not as a substitute for that. As for the possible consequences from a U.S. legal perspective, the Bitcoin Act does not alter the established assumption that Bitcoin is a commodity for the purposes of the Commodity Exchange Act, although it may have an impact.
Similarly, the new law is not expected to affect the Internal Revenue Service`s (IRS) conclusion that Bitcoin is treated as « property » (rather than « foreign currency ») for U.S. federal tax purposes. The IRS definition of foreign currency suggests that the currency must be issued by a country, rather than simply accepted as legal tender, in order to be considered a foreign currency for U.S. tax purposes. Legal tender refers to the coin, paper money or other circulation medium that a creditor must accept under the law to pay a debt. In the United States, coins and currencies (including Federal Reserve notes and circulation notes from Federal Reserve banks and national banks) are legal tender for all debts, public charges, taxes and duties. By making Bitcoin « legal tender », El Salvador has given Bitcoin a status equivalent to the US dollar. El Salvador relies heavily on remittances. In 2019, remittances using traditional money amounted to nearly $6 billion, according to the World Bank. As El Salvador`s President Nayib Bukele noted, « Bitcoin will have 10 million potential new users [in El Salvador] and is the fastest growing way to transfer $6 billion a year in remittances. » Bitcoin, which falls under the definition of « money, » could have significant legal implications, as UCC is cited in U.S. federal and state law. However, the UCC limits the term « money » to physical currency and, according to UCC 9-312(b)(3), the only method of perfecting a security right in money (other than proceeds) is possession.
It can be argued that physical possession of the type required by the UCC is not possible for an intangible cryptocurrency such as Bitcoin. Currently, there is no formal jurisdiction or legal authority on how Bitcoin is treated for UCC purposes. Definiția comună a conceptului de mijloc legal de plată However, for transactions, the parties are free to use other official foreign currencies that are legal tender in the issuing country (e.g. British pound or US dollar). The same applies to privately issued currency such as local exchange systems (e.g. coupon-based payment systems in some municipalities) or virtual currency systems (e.g. Bitcoin). Although they are not official currencies and are not legal tender, the parties may agree to use them as private currency without prejudice to the official currency. In this way, these forms of private money can be considered economic assets. Private monetary transactions and transactions are subject to general rules of trade in goods such as tax law, commercial law, money laundering law or others.
However, they are not official currencies and are not subject to monetary law. Ultimate status that of mijloc legal de plată [14] orice combinații cu status anterior that of mijloc legal de plată și cu status ulterior that of mijloc legal de plată orice combinații cu status of mijloc legal de plată și cu status anterior that of mijloc legal de plată The cryptocurrency community has made El Salvador`s decision to make Bitcoin legal, Widely received. El Salvador`s first move is seen as legitimizing the emerging asset and validating some of the cryptocurrency`s key features: Bitcoin is cryptographically secure, tamper-proof, and globally transferable. On the other hand, anti-cryptocurrency critics have condemned the move. Some have claimed that the decision to pass the Bitcoin law nationwide without initial testing or technical analysis was reckless. And just recently, the World Bank announced that it could not support the implementation of Bitcoin in El Salvador due to « environmental » and « transparent » disadvantages. Therefore, the Commission`s Recommendation on the scope and impact of the legal tender liquid euro (2010/191/EU) is to provide guidance on these issues that have a direct impact on citizens` daily lives. This blog is provided by Romano Law PLLC for general information and educational purposes only, and not to provide specific legal advice. By using this blog, you understand that there is no client relationship between you and Romano Law PLLC or any individual contributor. You should consult a licensed professional lawyer for individual advice regarding your own situation. Statutul de mijloc legal de plată al monedelor euro de colecție Although euro area countries share a common currency, interpretations of their legal tender differ from country to country.
This can be confusing and lead to issues such as toate combinațiile cu status of mijloc legal de plată, as well as its decision to make Bitcoin legal, El Salvador is stepping up its efforts to attract blockchain and cryptocurrency entrepreneurs to drive innovation, develop the industry, and contribute to the country`s economy. Given the upside potential, it is likely that other countries will soon follow suit and adopt Bitcoin or another well-known cryptocurrency as legal tender. Stocuri care nu au încă statut de mijloc legal de plată. Rezultate: 226. Exactly: 226. Timp de răspuns: 101 ms. For more information, contact our company to arrange a consultation. According to Bitcoin law, prices can be set in Bitcoin, companies must accept Bitcoin for goods and services, taxes can be paid in Bitcoin and the government guarantees the automatic convertibility of Bitcoins into dollars.
Pre-law monetary obligations expressed in U.S. dollars now have the option to be settled in Bitcoin.
