Russia bans BTC as a form of payment 🤯

A few days ago russian president Vladimir Putin signed a law which makes cryptocurrency legal in Russian Federation: it can be sell, bought, exchanged but no one can use crypto to pay for anything. As a personal posession it will be subject to taxation as well as transactions can be reviewed and russians will beable to challenge those transactions in court. :man_judge:

It seems somehow contradictory to recognize cryptocurrencies as digital posession with buy/sell/exchange value but with no purchase power…however russian government made its proposal and it was approved as such leaving more questions than answers if you ask to me… :thinking:

What do you think about this matter? Will this affect general adoption and price of cryptocurrencies not only in Russia but in the world looking at long term forecast?

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Makes perfect sense if your out to enforce the CryptoRuble as the nation’s only legal form of payment transactions.

Russia doing just as China did, it’s legal to have, hold and sell. Just don’t try buying anything :scream:. Converting the national currency into hard currencies as bitcoin ultimately devalues the currency, as well as the authoritarian aspect of controlling the currency supply within its own borders.

Curious to note, the bill gives rights to certain entities to trade, buy, sell whatever in full. They can’t possibly mean the wealthy Oligarchs could they? :zipper_mouth_face:

Really don’t think this will make a shred of difference to the markets, just as the China ban(s) or the Indian ban didn’t.

People are looking for a asset class to off-set devaluation of FIATS for savings as well as speculation. Russians can still speculate on Crypto, just not allowed to use them as a medium of exchange, so I’m guessing not just Bitcoin but all other cryptos will still be used as such. Russia has been a huge ICO market, with it’s fair share of exit scams and out right illegality. Can’t see this changing any time soon. :man_shrugging:

Looks like the Federation stamping it’s foot down prior to the roll out of the CryptoRuble?

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I think the government wants to control everything and cryptocurrencies are no acception. China, now Russia? The idea behind crypto is that it is universal. It makes no sense to not allow you to buy anything with it.

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It comes as a surprise to me because I assumed Russia being the kind of country that likes to always in control would be one of the first countries to accommodate Bitcoin. Maybe they have some tricks up their sleeves. Let’s see. How it unfolds

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The only thing I could say here is that Putin is for sure 100% an Ethereum and Vitalik Buterin fan…if by any chance Putin could be a fan of someone that is not himself that would be Vitalik.

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Actually I see this as a bullish news for digital assets, Russia is making a law framework for it and banks are allowed to participate in the market.
Goverments won’t leave digital assets out of laws, they’ll try to control it somehow.

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Yeah…i remember China and India ban…they both did not affect too much market price. I guess Russia is paving the road to a general cryptocurrency adoption but with regulations, in such a way as to ensure that the dominant crypto asset in russian territory is its own digital currency…CryptoRuble, CryptoYuan…etc. it is all at the end the same thing but in different territories. In the beginning i thought as @kaabayahaya tha Russian will be one of the first countries to accomodate BTC and other cryptos but now it turns out that Bitcoin has been accomodated…with a weight on his ankle :slight_smile:

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I can see that Bitcoin has two separate aspects:
1.as an asset, which does not overtly threaten governments, and
2.as means of exchange for goods and services - this worries and scares them because it is outside central banks’ control, difficult to measure by tax authorities and difficult to trace by law enforcement entities.
is my thinking on the right track?

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Hi @Eva, contrary to popular belief, Bitcoin is relatively easy to track. It’s potentially anonymous but not private due to the transparent nature of bitcoin’s blockchain.

If at some point you’ve used a regulated on/off fiat ramp (e.g an exchange like coinbase) then your name is tied to those coins. You could move them around multiple wallets and your “fingerprint” would still be on them.

To secure anonymity, you need to either mine the BTC yourself or buy “peer to peer”, these ways your identity wouldn’t be comprised but your transactions could still be tracked.

Hope this makes sense :grin:

And yes your thinking’s right in regard of the control aspects of Russia’s new bill.
Using BTC as a means of exchange threatens not only the control the nation has over monetary policies but could also devalue its native currency.

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