Tax Implications of Digital Currencies

What are cryptocurrencies? According to the South African Reserve Bank (SARB): Cryptocurrencies (that is, decentralised convertible virtual currencies) are a sub-set of virtual currency. Bitcoin, Litecoin and Ripple are examples of cryptocurrencies. Legal tender are notes and coins issued by a bank. Although not legal tender, cryptocurrencies are exchangeable for legal tender and may be used to purchase real world goods and services