Only in recent months has the term ‘digital commodity’ existed, and it seems like the term will soon find its existence in the upcoming finance glossary. Making sure is the Finnnish government who has just ruled out the widely-popular digital currencies like Bitcoins and Litecoins to be treated as digital commodities. It simply means that the digital currencies cannot be treated as a payment instruments because of lack of responsible issuer, as explained by the Bank of Finland’s head Paeivi Heikkinen in an interview to Bloomberg.
She stated, “Considering the definition of an official currency as set out in law, it’s not that. It’s also not a payment instrument, because the law stipulates that a payment instrument must have an issuer responsible for its operation. At this stage it’s more comparable to a commodity.”
The decision taken by the Finland central bank is comparatively acceptable as it doesn’t aim at halting the use of digital currencies, but simply tries to set a few specific guidelines about treating it financially. This is turning out to be an important and influential decision, with the Scandinavian state already being one of the major European economies.
Finland although is not the first European country to have taken a decision to control the unauthoritative use of Litecoins, Bitcoins and other digital currencies. With several warnings issued by regulators in Europe against the use of unregulated currencies, countries like German and Norway has ruled them out as “private money” and “non-currency”, respectively. Meanwhile, Denmark still hasn’t announced its stand on either accepting or denying the digital currencies.
The non-European countries have been further in the news for their strict stand against Bitcoins and Litecoins. China has overall banned the use of digital currencies on its soil, making the nation’s major online marketplace Alibaba turning away from using them in near future. But the U.S. Internal Revenue System still looks unsure of offering any guidance on Bitcoin’s regulation, saying that they are monitoring everything of the these digital currencies from the moment they were introduced in the market.
To contact the reporter of this story: Jonathan Millet at email@example.com