What last week’s European VAT ruling means for bitcoin fungibility
The European Court of Justice held that bitcoin is a currency for the purposes of VAT taxation. The decision will make it easier to exchange euros for bitcoin and could have implications for bitcoin fungibility down the line.
(24) "Money" means a medium of exchange currently authorized or adopted by a domestic or foreign government. The term includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more countries.So, when the ECJ holds that Bitcoin is currency, doesn’t that mean that a foreign government or intergovernmental organization just “authorized” bitcoin as a medium of exchange? Sure! Why not? “authorized” isn’t defined, and I’d say a court holding that Bitcoin is currency sure sounds like an authorization. And if that’s true then Bitcoin is money under the UCC and the liens don’t adhere; nemo dat no more. I’m sure we can continue to have persnickety arguments about that (like whether only states can “authorize,” while intergovernmental orgs like the ECJ must in fact “establish”) but… those are for another day. For now, thanks ECJ!