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10/05/19 10:27 UTC-4

Cryptocurrencies in Germany: financial geography

Financial geography or how cryptocurrencies develop in Germany
Financial geography or how cryptocurrencies develop in Germany

Cryptocurrencies in Germany are becoming increasingly popular. In March last year, the German Ministry of Finance recognized Bitcoin and other Altcoins as “official means of payment”. Since then, the popularity of Bitcoin and crypto payments has increased several times.

In this article we will talk about how matters are with cryptocurrency regulation in Germany, whether there are Bitcoin exchangers and mining enterprises, and what German citizens can buy for Bitcoin.

 

Bitcoin and cryptocurrency as the official means of payment

On February 27, 2018, the German Finance Ministry signed a decree recognizing Bitcoin and other Altcoins as legal electronic means of payment. The ruling is based on the decision of the European Court back in 2015, when digital gold was recognized as a way to pay.

Until now, cryptocurrencies in Germany have the legal status of official electronic money and are actively used for trading.

 

Bitcoin for purchases without commission

The same in 2018, the Ministry of Finance of Germany published another document. According to it, all purchases for cryptocurrency or Bitcoin are not taxed, but are official. Goods or services paid for cryptocurrencies are not subject to state control of tax services.

 

30% of the German population invests in crypto

In 2018, Germany became the champion in the number of Bitcoin investors. According to the research of the local Postbank, about 30% of the population are willing to invest (or are already investing) in cryptocurrency assets. At the same time, 67% of (potential) investors are men from 18 to 35 years old.

 

Germany – the leader in the number of Bitcoin nodes

According to Bitnodes research,  1837 full Bitcoin nodes are operating in Germany. This is more than 18.5% of their existing number. This fact indicates that Bitcoin in Germany is mined much more intensively than in other countries.

 

Purchases for Bitcoin in the German offices of Microsoft, Intuit and Expedia

More than 8,000 merchant companies in Germany accept digital money. In addition, the official German divisions of Microsoft, Intuit and Expedia accept Bitcoin for payment at the fully official level and can even send an electronic check to the sender confirming the transaction.

 

Bosch and Porsche on the blockchain

In May 2017, Porsche, the German car company, announced a blockchain startup competition, following which deliveries of parts for cars are recorded in the blockchain and on the IBM platform. In addition, in 2019, the German Mercedes-Benz Car car brand also developed a blockchain platform for deliveries.

Also, in March 2017, the German Robert Bosch GmbH company began using the blockchain to counter fraudsters who reduce the numbers on the counters of the rally.

 

Legal mining without commission and tax

Given that mining in Germany is considered absolutely legal, it is not subject to tax payments. The same can be said about the supply of equipment for mining (Asics and farms), they are not subject to additional taxes, in contrast to Norway, France and some states of America.

Editor: Jerg Wos

#mining #cryptocurrency #Germany #cryptocurrencystatus #Bosch #Porsche #Bitcoinnode

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