It looks like G20 members are leaning towards not letting bitcoin be classified as currency, which will ultimately influence the taxation mechanisms that can be applied to it in different countries. During the meeting, a number of finance ministers have expressed their opinions on bitcoin, and in general, they don’t see it as means of exchange.
The most popular opinion at the moment is that Bitcoin is not currency but an asset. This makes capital gains taxation highly probable, reports Bloomberg. Such kinds of taxes are not applicable to “real” currencies like Euro, for example.
“Whether you call it crypto assets, crypto tokens—definitely not cryptocurrencies—let that be a clear message as far as I’m concerned. I don’t think any of these cryptos satisfy the three roles money plays in an economy,” stated Klass Knot, president of De Nederlandsche Bank.
There are there traditionally defined functions of money: a medium of exchange, a store of value, and a unit of account. A similar statement made Ahmed Alkholifey, governor of Saudi Arabia’s Monetary Authority. He cited lack of stability as the main reason why various crypto assets in circulation are not suited to be currencies.