DrThe cryptocurrency boom, which was recently exacerbated by electric car maker Tesla’s investment in Bitcoin, appears to be producing exotic blooms. Online precious metal trading company Coininvest has now announced that it will acquire silver Bitcoin minted coins, which should enjoy the status of a real method of payment.
“With our limited edition, we are redefining the classic silver coin and creating a unique connection that is very attractive to precious metal investors as well as cryptocurrency investors,” said Daniel Marberger, managing director of the online precious metals platform, Coininvest, based in Frankfurt.
This seems unusual at first. What is behind it? How could Bitcoin, viewed so critically by local regulatory authorities, suddenly become a true method of payment? And why is an online platform allowed to mint the means of payment, that is, to keep the rack of coins as they were, as people used to forge them, especially in earlier times with precious coins?
An application from the company states that coins are in no way the official payment method for the Federal Republic of Germany, even though the company is based in this country. The whole thing is kind of a little trick. The company uses the state regulation of Niue Island. Niue, also known as “The Rock,” is an atoll country in the South Pacific Ocean, 2,400 kilometers northeast of New Zealand. The country is located south of Samoa and west of the Cook Islands. New Zealand has been linked to New Zealand with a partnership agreement since 1974.
Bitcoins now have a face value of $ 2 as a currency in Niue, and this is mentioned in the words on the back of the coin with the image of British Queen Elizabeth II. “In Niue, coinage is the official method of payment,” says Marburger.
For silver coin investors, the somewhat insane build should have very practical advantages. “The statutory tender status really makes this coin a coin – with no face value it would just be a medal,” Marburger says. On the other hand, coins can be imported from non-EU countries with a 7 percent import sales tax and then sold with differential taxes. “Bitcoin is produced outside of Europe, which is why differential taxes are used, not just the German value-added tax,” Marburger says. “Differential taxes are definitely cheaper. Otherwise, a 19 percent tax will be paid.”
Coininvest has signed a contract with Niue Island for this. Not everyone should simply mint Niue coins as they want, Marburger says. For each coin sold, a certain percentage or premium is allocated to the source of the payment instrument, in this case to Niue, which is contractually regulated: the so-called royalty fee. The coins underwent government testing procedures before the idea was accepted. “This testing procedure is certainly more stringent in Canada or Australia than it is in Niue,” says Marberger.