Bitcoin has been classified as a transferable value by a Dutch court, after it ruled in favor of a plaintiff who is owed .591 Bitcoins. This is according to a court document released on March 20.
Mr. J.W. de Vries filed his claim in the Dutch court on February 2, 2018 against the non-public company, Koinz Trading BV, which was originally ordered by a lower court of Midden-Nederland to pay mining proceeds totaling 0.591 Bitcoin owed to the petitioner.
Due to the company’s refusal to pay the required volume in Bitcoin as ordered, the court has ruled that the company had better pay what it owes, or be declared insolvent.
The court judgment specifically says that Bitcoin displays all the characteristics of a “property right”, and therefore the claim to transfer Bitcoin, according to property rights, is legitimate.
“Bitcoin exists, according to the court, from a unique, digitally encrypted series of numbers and letters stored on the hard drive of the right-holder’s computer. Bitcoin is ‘delivered’ by sending Bitcoins from one wallet to another wallet. Bitcoins are stand-alone value files, which are delivered directly to the payee by the payer in the event of a payment. It follows that a Bitcoin represents a value and is transferable. In the court’s view, it thus shows characteristics of a property right. A claim for payment in Bitcoin is therefore to be regarded as a claim that qualifies for verification,” the court explains further.
Having analyzed an undisputed contract between Mr. Vries and Koinz Trading BV, with the obligations taken in Bitcoin, the court believes the amount should also be paid back with the same digital currency, explaining that it is a civil obligation to pay.
Although the Dutch court may be taking steps toward digital money being recognized as a currency, many other organizations are not. The G20 Financial Stability Board issued a document on March 20th that implied that it considers digital currency to be assets, rather than actual currency. The document says that digital currencies, “lack the traits of sovereign currencies.