In terms of mobile payments and a ‘cashless society’, the technology has always been there; it’s always been a matter of red tape and implementation which has been the issue.

Now, Germany’s ministry of finance has potentially pushed the divisive Bitcoin technology one step closer by recognising it as a “unit of account”. In other words, it can be used privately, meaning it is a taxable subsidy.

The ruling has come in response to a parliamentary enquiry from the Federal Ministry of Finance, and was announced by German MP Frank Schaeffler.

This is the latest in a series of events which has examined the legitimacy of the nascent payment technology.

Earlier this month, Judge Amos Mazzant ruled against BTCST founder Trendon Shavers after his hedge fund lost $1,834,303 for investors – or 263,104 Bitcoin.

Shavers argued that, as Bitcoin wasn’t money, it wasn’t subject to federal security checks, after the SEC had accused him of defrauding investors. The judge disagreed, noting that the BTCST investments met the criteria for investment contract.

Back in July, Thailand ruled that using Bitcoin to trade, sell or buy goods, was illegal.

It’s not much of a surprise that Germany has taken a stand on this; as the Guardian reported back in April, there is an area of Berlin where the electronic cash system is perfectly legit.

Yet today’s ruling still leaves more questions than answers. How can the Bitcoins be taxed, especially given it’s near impossible to work out exactly how much a user has? After all, when it’s not even clear who invented the technology, it does leave a feeling of a sub-industry not quite wanting to move into the mainstream yet.

Still, given the value of Bitcoin shot up during the Cyprus banking crisis earlier this year, the demand is certainly there.

What do you make of today’s announcement? Find out more on the virtual currency debate at Telecoms Tech World, in London on 26-27 November.