Cryptocurrencies as a Legal Tender

[Yogee]

https://dailyhodl.com/2020/03/06/french-court-issues-historic-bitcoin-btc-ruling-says-worlds-leading-cryptocurrency-is-a-fungible-intangible-asset-just-like-money/

The above article is about a French court ruling about Bitcoin loans qualifying as commercial loans and that makes it a legal tender just like fiat money.

In that same article, a counsel from a certain law firm also shared his opinion on the subject

“When we lend Bitcoin or when we borrow it, it is a consumer loan which obliges us to return the same quality and quantity, and therefore makes the borrower bear the risks or benefit from the fruits. This also applies to Bitcoin Cash, Ethereum or other cryptocurrencies.”

I was wondering about that last sentence. If the same case happens and they use BCH, ETH, and other cryptocurrencies for the loan, will the French government also rule that they are also legal tender?

That leads me into another question, if the government allows other cryptocurrencies as legal tender, should they limit them to two, five, or ten? We know there are already thousands of coins in existence and there will be more in the future. I am thinking that many coin developers will only abuse if governments will not limit the number of accepted cryptocurrencies.

[qazgroup]

It has been great to see global court's ruling in favor of btc and crypto, few days ago i heard similar news from Germany and one from Australia too, i guess, so all these things are indicating the slow and sure acceptance and adoption of crypto that is going on all around the world.

[Samayuki]

Same here, it feels want we most fear about is fading bit by bit, some still find it hard to believe that crypto adoption will work in the future and the upcoming Central bank own coins brings up new confusions to those who don't really understand

[Febo]

https://dailyhodl.com/2020/03/06/french-court-issues-historic-bitcoin-btc-ruling-says-worlds-leading-cryptocurrency-is-a-fungible-intangible-asset-just-like-money/

The above article is about a French court ruling about Bitcoin loans qualifying as commercial loans and that makes it a legal tender just like fiat money.

In that same article, a counsel from a certain law firm also shared his opinion on the subject

“When we lend Bitcoin or when we borrow it, it is a consumer loan which obliges us to return the same quality and quantity, and therefore makes the borrower bear the risks or benefit from the fruits. This also applies to Bitcoin Cash, Ethereum or other cryptocurrencies.”

I was wondering about that last sentence. If the same case happens and they use BCH, ETH, and other cryptocurrencies for the loan, will the French government also rule that they are also legal tender?

That leads me into another question, if the government allows other cryptocurrencies as legal tender, should they limit them to two, five, or ten? We know there are already thousands of coins in existence and there will be more in the future. I am thinking that many coin developers will only abuse if governments will not limit the number of accepted cryptocurrencies.

There is no logic to prohibit anything. You decide what coin you will accept for whatever you are selling. You will accept the one that is totally decentralised and premissionless. Oh and the one that no one can spy what you will buy with it.

[betty11]

Developing nations need to wake up to this new economic shift, so they wouldn't need to cry fowl when a developed nation such as France keeps dictating world economic frontier. This is the best opportunity for developing nations to be well positioned and take control of their finance than be dictated for by IMF.

[pixie85]

There is no logic to prohibit anything. You decide what coin you will accept for whatever you are selling. You will accept the one that is totally decentralised and premissionless. Oh and the one that no one can spy what you will buy with it.

I agree. If both the lender and the borrower agree to transact in a shitcoin it should also be legal. The government should not come between them.

People should always have the freedom of choice and the consecquences should stay with them. When you can take a loan in Bitcoin or some scam BSV coin and you choose the scam it's your fault and your responsibility. By legalizing it the government is allowing you to do it which is good.

[Yogee]

Febo and pixie85, buyers and sellers can agree to whatever cryptocurrency but this is the government that we are talking about. If you both sellers and buyers agree to accept a new minted token as payment, will the government allow that as a legal tender as well? That token is still untested and can you imagine the drawback to the government when that token ends up dead or useless?

[minairia3]

I was wondering about that last sentence. If the same case happens and they use BCH, ETH, and other cryptocurrencies for the loan, will the French government also rule that they are also legal tender?

That's the thing French only mentioned bitcoin and as far cryptocurrency goes on massive adoption, I think this will be accepted too in the future. Many will say why only btc has been moving forward. No doubt it will, as the first crypto that has been introduced has the privilege of ripping out this benefit. Im not sure if other country will consider altcoins especially those fork of btc which has been in so many issues in the past. Lots of deliberation must be done and consider here in my opinion before leaping to same case with btc.

[Yogee]

minairia3, that is also what I think is going to happen if France and different countries were to approve some altcoins as a legal tender. I also imagine some of these cryptocurrency personalities like Justin Sun will do some dirty tricks and make some deals with politicians or other government officials to have their own coin approved.

[fuer44]

for the first point about the limitations of the coin that will be used, in my opinion will depend on the platform that will provide it, but the maximum may only be 5-10 no more than that, because it will make consumers confused with the number of choices. but I also underline the statement from the law firm from France, where if you borrow or loan it using crypto, that means accepting it again or returning it according to the initial price or agreement. well, here the agreement is an estimate in terms of fiat? or the crypto? if the estimate is in the number of crypto, I think if there is a change in prices there will be a problem there.

[jossiel]

I agree with you OP.

It must be limited and it should even be only bitcoin as a legal tender. That's already the face of cryptocurrency if they have allowed and legalized bitcoin.

But declaring the other crypto's same as bitcoin, it depends to their jurisdiction. Maybe they're looking into it as the same thing and function.

[Lantind]

Same here, it feels want we most fear about is fading bit by bit, some still find it hard to believe that crypto adoption will work in the future and the upcoming Central bank own coins brings up new confusions to those who don't really understand

Talking with the law is talking with specific rules, so it is very natural that there are some who still find it difficult to believe about the adoption of crypto in the future, because until now the adoption of crypto is still under consideration in several countries.

[TheClownSong]

An increasing number of countries are getting transactions using Bitcoin or cryptocurrency. Maybe the effect on prices has not been felt in the short term but will have a positive effect on people's views on cryptocurrency

[jerrison]

https://dailyhodl.com/2020/03/06/french-court-issues-historic-bitcoin-btc-ruling-says-worlds-leading-cryptocurrency-is-a-fungible-intangible-asset-just-like-money/

The above article is about a French court ruling about Bitcoin loans qualifying as commercial loans and that makes it a legal tender just like fiat money.

In that same article, a counsel from a certain law firm also shared his opinion on the subject

“When we lend Bitcoin or when we borrow it, it is a consumer loan which obliges us to return the same quality and quantity, and therefore makes the borrower bear the risks or benefit from the fruits. This also applies to Bitcoin Cash, Ethereum or other cryptocurrencies.”

I was wondering about that last sentence. If the same case happens and they use BCH, ETH, and other cryptocurrencies for the loan, will the French government also rule that they are also legal tender?

That leads me into another question, if the government allows other cryptocurrencies as legal tender, should they limit them to two, five, or ten? We know there are already thousands of coins in existence and there will be more in the future. I am thinking that many coin developers will only abuse if governments will not limit the number of accepted cryptocurrencies.

I understand that there are different sides toa cube. So, let me look beyond the part of the cube you see and point out mine. The gave verdict affirming bitcoin as a legal tender that can be borrowed in a quantity and quality, my question is, what happens to the volatility effect on bitcoin and how it affects the price. so if one borrows  1 bitcoin at $10000 and there is a %50slash in price before repayment then he will have to pay 2 bitcoin?

[leea-1334]

Well,,, of course the legal courts have to see it that way. If a man borrows 2 cows and promises to return the loan plus to pay a goat back as interest,,, and he does not? Then when the lender sues him in court, the court will surely recognize the same is legitimate and order to pay back as agreed.

Cows and goats can be legal tender too if the parties accept it.

[Yogee]

jerrison, the loan is not really the point of my topic but I will still answer you. If you borrow 1 bitcoin and promised to pay it with interest, then you still pay in 1 bitcoin with interest when the loans is due. The fiat value is immaterial in this case unless both parties agrees to a different term. leea-1334 puts it nicely in her comment.

[roaringunknown]

Temtum is when it gets launched as the backbone of Anguilla.

[shinratensei_]

minairia3, that is also what I think is going to happen if France and different countries were to approve some altcoins as a legal tender. I also imagine some of these cryptocurrency personalities like Justin Sun will do some dirty tricks and make some deals with politicians or other government officials to have their own coin approved.

They are not putting their usability as the main thing to be adopted but they were trying to create another sensation. I think that with the last statement and France's court was also ruling some native altcoin as legal tender too. At least that must not be the shitcoin that was not having volume.
Just hope if this will be going easy and there will be no a lot of problem with the decision that has already taken by the court.

[TimeTeller]

I understand that there are different sides toa cube. So, let me look beyond the part of the cube you see and point out mine. The gave verdict affirming bitcoin as a legal tender that can be borrowed in a quantity and quality, my question is, what happens to the volatility effect on bitcoin and how it affects the price. so if one borrows  1 bitcoin at $10000 and there is a %50slash in price before repayment then he will have to pay 2 bitcoin?

That is the risk in borrowing crypto.
The borrower should know those possible repercussions before he even think of borrowing it.
It is on his side whether he will proceed in borrowing or not, given the possible circumstances ahead.

[Yogee]

In addition to what TimeTeller said, the price volatility can also benefit the borrower. When Bitcoin goes down against fiat, he can purchase 1 Btc at a lesser cost. The lender on the other hand bears the loss in fiat value.