Last updated on March 17th, 2015 at 05:26 pm
Poland’s Ministry of Finance doesn’t think Bitcoin is illegal and is closely watching the expansion of the world’s most famous cryptocurrency. And the institution’s opinion isn’t unique.
The information was revealed by the ministry’s representative Szymon Wo?niak, quoted by Puls Biznesu, during a conference at the Warsaw School of Economics. “Everything that’s not forbidden, is allowed. However, in light of the European Union legislation, we can’t recognize Bitcoin as legal tender or electronic money. Bitcoin capital gains are taxed as ordinary income. Individuals who don’t report and pay the tax may be penalized”, the representative explained.
We won’t stand in the way of Bitcoin’s development, but we need a declaration from its users whether they expect any regulations to be introduced or rather prefer the government to stand aside.
During the same event, Krzysztof Piech, from the Warsaw School of Economics, said Bitcoin has a great potential within the Polish economy, claiming the country is in the top 10 in the number of Bitcoins mined. Piech also stated that the Polish Bitcoin trading volume is one of the biggest in the world.
“We have the potential and innovative financial institutions. The missing element is the regulation that will help both parties to come closer for the good of the economy “, Piech added.
Bitcoin is “the next logical step”
In the meantime, Ed Moy, a former director of the United States Mint, said that “the promise of digital currency is a new financial transaction system: cheaper, more efficient and secure transactions. No currency wars, exchange rates and arbitrage. There could be less friction and more transparency for every transaction”.
Moy wrote an opinion article published by Money News, which he used to convey the idea that “digital currency seems to be the next logical step in the evolution of currency“.
Realizing digital currency’s promise will be depend on one of two paths. First, governments may force digital currency to comply with the existing financial transaction system. This would slow digital currency’s development, but make it easier for governments to get comfortable with it.
Second, government may allow the marketplace to develop a new financial transaction system. This would accelerate digital currency’s development, but make it difficult for governments to get comfortable with it.
The next five to 10 years will be critical.
According to the former director of the US Mint, “this technology has the ability to disrupt the status quo and springboard the global economy into the future. It gets sovereign nations out of the currency manipulation business. It may or may not be Bitcoin or its imitators, but chances are likely that digital currency is here to stay”.