As part of a libel case for the New South Wales, or NSW court, Judith Gibson allowed the use of cryptocurrency as collateral.
“This is a recognized form of investing,” Gibson said of cryptocurrency and also recognized its volatility, according to a short letter from the Australian Associated Press.
As part of the libel case, the NSW court has stated that the accusing party must place $ 20,000 AUD, or approximately $ 13,000 USD, in a bank account that is being monitored by the courts. If the accusing party loses or separates, the money pays part of the legal costs of the suspect.
Instead of a bank account, the court allowed the claimant to use his cryptocurrency bill.
Given the concerns about the instability of the suspect’s legal team, the claimant agreed to provide monthly reports on the status of the value of the crypto account.
The courts also required the plaintiff to inform the defendant’s lawyer if the value of the crypto account drops south of $ 20,000 AUD.
“I see the desirability of the defendant receiving a quick report of a decrease in the value of the account,” Gibson said. “These are uncertain financial times.”
Although the use of cryptocurrency as collateral is not the most glamorous use case, in the eyes of governments worldwide it shows a growing validity of the industry.