France Joins the List of Bitcoin-Friendly Countries

by

Early 2020 brought very positive news from Bitcoin. Apart from breaking out of the bearish slump from the second half of 2019, Bitcoin has been recognized by major European countries such as Germany. Many others ponder cryptocurrency legalization even as we speak. France isn’t on that list, though, as it now officially recognizes Bitcoin as currency.

The great news for crypto communities arrived less of a week ago when a court in Nanterre officially acknowledged Bitcoin as money. France now joins Germany on the list of Bitcoin-friendly countries, although there are still ways to go before the leading cryptocurrency is introduced as a payment method.

France Follows in Germany’s Footsteps

The initial legal case that led to this decision stems from a dispute between Paymium, a French Bitcoin exchange and English investment firm BitSpread. In 2014, the crypto exchange lent BitSpread Bitcoins. Three years later in 2017, Bitcoin Cash emerged as a result of the hard fork, giving Bitcoin holders BCH on a 1:1 ratio. This, of course, led to a dispute between BitSpread and Paymium, as the crypto exchange expected to receive BCH in return.

A French court was selected to decide on the matter and it took 3 years to do so. The Commercial Court of Nanterre has officially deemed Bitcoin as a fungible financial asset similar to fiat currencies. This paves the way for Bitcoin transactions in France which means that trading, repo, lending, and everything else should soon be deemed legal.

This will, of course, make the cryptocurrency market much more liquid and open up the way for new businesses. One notable industry that could gain a lot from the court’s decision is Bitcoin gaming. Since all forms of gambling are regulated and legal in France, the introduction of Bitcoin to online casinos can see the industry explode, and we all know how lucrative that can be.

Positive Bitcoin Legislation Enacted in South Korea and India Too

Apart from Germany, many other countries have enacted positive Bitcoin legislation. India recently officially recognized the cryptocurrency and South Korea is also on the list of countries that now officially recognize Bitcoin as money. The leading cryptocurrency has skyrocketed in price early this year and even though things have settled down in recent weeks, experts fully expect real Bitcoin price fireworks by the end of the year or 2021.

Why? Well, if history repeats itself, the upcoming Bitcoin halving in May should send the price to soar sky-high. Previous halvings have done so, so many experts are adamant that things would go that way this year as well. This, along with positive crypto legislation being enacted in more and more countries can close the gap between digital and fiat currencies.

Banks may not be too happy about that idea, but the world is finally recognizing the benefits of Bitcoin. More and more industries are jumping on the BTC train and it is high time governments recognized it. France is one of the first to do so, and we hope that more countries will follow its example.