![handle is hein.journals/oslo3 and id is 1 raw text is:
The Consumer's Right of Withdrawal in case of
Payment with Bitcoins
Euripides Rizos*
Abstract
Bitcoin is the most important and well known form of digital currency. It is not produced or backed
by any single entity. Its production takes place in a decentralised manner and its value derives only
from the fact that there is a growing community that attributes value to it and chooses to transact
using this innovative means of payment. However, its importance is increasing, especially in the field
of e-commerce.
The main aim of this article is to examine the consumer's right of withdrawal, as it is regulated in the
Consumer Rights Directive (Directive 2011/83/EU), in case of payments with bitcoins. More
specifically, it is examined whether a consumer's payment with bitcoins can be a hindrance to the
consumer's protection, with respect to the withdrawal right provided by the aforementioned
Directive in cases of distance and off-premises contracts. Furthermore, the consequences of the
exercise of the withdrawal right are examined, particularly with regards to reimbursement. The main
concerns derive from the bitcoin's disputed legal nature and its high value volatility.
Keywords: Bitcoin; Consumer Rights Directive; consumer's right of withdrawal; e-commerce; digital
currency.
1. Introduction
The European Central Bank (ECB) in its 2012 report on virtual currency schemes has
defined virtual currency as 'a type of unregulated, digital money, which is issued and
usually controlled by its developers, and used and accepted among the members of a
specific virtual community'.1 Amongst the various types and kinds of virtual currencies,
the most important and well known is, undoubtedly, the bitcoin.2 Its importance in e-
commerce is steadily increasing, as more online merchants accept bitcoins as a means of
Lecturer, School of Law, European University Cyprus; e-mail: E.Rizos@euc.ac.cy.
1 European Central Bank, 'Virtual Currency Schemes' (Frankfurt, October 2012)
<https://www.ecb.europa.eu/pub/pdf/other/virtualcurrencyschemes201210en.pdf> accessed 10 March
2016.
2 See European Central Bank (ibid). See also Adam Hayes, 'The Decision to Produce Altcoins: Miners'
Arbitrage in Cryptocurrency Markets' (2015) New School For Social Research (NSSR) Working Paper, No
4/2015, 1 <http://www.economicpolicyresearch.org/econ/2015/NSSRWP-042015.pdf> accessed 15
March 2016, where it is suggested that '[b]itcoin (BTC) has become the gold standard of
cryptocurrencies' (1).](ViewImageLocal?handle=hein.journals/oslo3&div=1&collection=&method=preview&ext=.png&size=3)
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