Is cryptocurrency a medium of exchange if not legal tender

is cryptocurrency a medium of exchange if not legal tender

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While not officially banned, the District of New York ruled companies, and payment service companies virtual asset by the FinTech. Financial institutions are not allowed allowed its use and trade.

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Notice answers that question in the negative and clarifies that the IRS views cryptocurrency as property (rather than currency) even. Convertible virtual currency does not have legal tender status in any jurisdiction. The short answer is that cryptocurrency is not a form of money. Because it is issued by a central bank, a CBDC would have legal tender status, making it.
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It is stated that bitcoin remains highly volatile, highly speculative, and is not entitled to legal claims or guarantee of conversion. Lists of countries by laws and law enforcement rankings. Retrieved 15 October Legal Main article: Bitcoin in El Salvador Bitcoin was made legal tender in the country through the Bitcoin Law , which was passed on 8 June , [41] [42] and took effect on 7 September This is unlike most conventional payment methods, such as electronic bank transfers, which rely on a central party to keep and update records of transactions.