"The reason for the dispute is whether the borrower should return to the lender the bitcoin cash created by the fork.

This decision was taken in the context of a dispute between the French exchange platform Paymium and the English alternative investment company BitSpread. In summary, Paymium loaned 1,000 bitcoins to BitSpread in 2014, before the hard fork of bitcoin in 2017, which resulted in the new cryptocurrency, Bitcoin Cash, at a one-to-one parity. The reason for the dispute is whether the borrower should return to the lender the bitcoin cash created by the fork.

“The scope of this decision is considerable because it allows bitcoin to be treated like money or other financial instruments. It will therefore facilitate bitcoin transactions, such as lending or repo transactions, which are growing, and thus favor the liquidity of the cryptocurrency market , ” says Hubert de Vauplane, lawyer specializing in Kramer & Levin.

Once judges have considered bitcoin as a fungible asset, in other words, like money, bitcoin lending falls under the “consumer loan” (not to be confused with consumer credit), which transfers ownership property loaned to the borrower during the term of the loan. And so, the bitcoins Cash belongs to the borrower, like the dividend to the shareholder, considers the Court.

Source: https://7bitcoins.com/french-court-recognizes-bitcoin-as-currency/

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