The Russian federation is preparing a bill which seems like it will prohibit cryptocurrency.
The upcoming bill is proposed to ban what it calls “money substitutes, including electronic form”. While the bill does not specifically mention Bitcoin, the implications are pretty clear.
This move goes against their more recent “wait and see” attitude toward cryptocurrency. Russian central bank chair Georgy Luntkovsky recently stated they advocate “a cautious approach to the bitcoin…we cannot reject this tool. It may as well have a big future.”
Unfortunately, Georgy, it looks like you can, and you will.
Russia Joins An Unfortunate Club
Russia’s decision to ban Bitcoin puts it in the company of backward-thinking nations who may end up isolating themselves from the new global economy as it develops.
In June, Bolivia announced a ban on cryptocurrency, and Ecuador followed suit a month later. New York, as well, has been talking about a “Bitlicence”, which will make it difficult for Bitcoin businesses to exist in the Empire State.
Meanwhile, other countries are taking a more moderate stance. Switzerland, The Isle of Man, and Romania have all taken more liberal stances toward cryptocurrency.
Russia’s Economic Woes
With the situation in Ukraine becoming steadily worse, Russia has decided to back Ukrainian separatists against the wishes of the West. As a result, Canada, the United States, and the EU have announced a series of economic sanctions against Russia, creating an atmosphere similar to the Cold War, despite US president Barack Obama’s insistence to the contrary. .
Bitcoin, though, can help get around economic sanctions by transferring funds undetected by the central banks.
During a time of increased economic isolation for Russia, their stance toward cryptocurrency will set them even further apart from the rest of the world. Is this what Russia wants?
Russia Changes Its Stance On Bitcoin
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