At regular intervals, countries or individuals provide Bitcoin News that raise some questions but also opportunities. This time it hits Italy. As we have reported many times, the country on the Mediterranean is one of the countries with the highest use of Bitcoin. So far there is no clear reason for this. It is conceivable, however, that the restrictions in cash transactions ensure that digital gold has become more and more established. Citizens in Italy are currently only allowed to process payments up to a value of € 3,000. From 2020, this restriction on the monetary freedom of Italians is to be restricted even further until one day the country should function as cashlessly as possible. Where should that lead and is BTC the solution?
Italy makes headlines with Bitcoin News
As can be seen from some media reports, Italy plans to further reduce the limits up to which cash transactions can be carried out from 2020. So far it is € 3,000. From next year, these will be reduced to € 2,000 and then even to € 1,000 in 2022. But that’s not all: Merchants who refuse card payments face a penalty of € 30 and 4% of the total value of the payment. One could also formulate this Bitcoin News more drastically, as the Twitter user “Bitcoin Valgardena” does: “Italy will make all cash payments over € 2,000 illegal from 2020.”
Why is that a problem and Bitcoin the solution?
The background to the effort is to ultimately eliminate cash. The motivation for the newly adopted measures are, for example, minimizing tax evasion and abolishing the informal economy.
There is basically no objection to this, but in reverse this also means restricting the monetary freedom of Italian citizens. What seems unthinkable in Germany due to the still high use of cash is now becoming a reality in Italy.
Cash is the ultimate form of anonymous and private payments because no payment flows can be traced. Conversely, the abolition of cash means that citizens are forced to process payments in digital form via payment service providers and banks, thereby losing their privacy and monetary freedom.
And this is exactly the reason why the news is Bitcoin News. The inventor Satoshi Nakamoto conceived the digital asset as digital cash with which one can exchange value (as with real cash) without an intermediary. It offers all people an opportunity to free themselves from the financial control of the state without restrictions. It is therefore conceivable that the new restrictions will increase Bitcoin use in Italy.