Russia plans own cryptocurrency, would ban bitcoin

[K_Robdog]

It seems many nations are developing their own cryptocurrencies. With all these crazy amounts of quantitative easing, fiats are now running on borrowed time. I wonder how many years it will take to make fiat become a part of history.

 

[CRPA9]

Very interesting.. I would assume countries will want to keep control of there own currency.

 

[Gholis]

It is not such a bad move by Russia because of late there have arisen so many issues because of bitcoin. There are forex fraudsters and there are also bitcoin fraudster. The bitcoin fraudsters are however more dangerous and that is probably one of the reasons why it is being banned by the country,

 

[Clay Davidson]

If they are going to ban bitcoin and create their own cryptocurrency then the better. I have never liked bitcoin because there are so many risks associated with it and I would rather be on the safe side. Some banks will probably come up with their own cryptocurrency so that the users can be assured of their money security.

 

[Dora_WalletInvestor]

Not only has Russia not banned Bitcoin, it has technically legalized it - above a certain sum of transactions investors will have to report to the tax authorities. But you cannot use cryptos to buy goods and services because of the risk of it being used illegally.
More and more countries are proposing the creation of central bank digital currencies, and even though these technically fit the definition of cryptos, a big difference will be that these won't be decentralised, which somewhat undermines the goal of cryptos.

 

[JimmyRozza]

Anybody know what's going on with China's new E-currency. I keep hearing about it and seeing FB adds pop, but they look dodgy as....

 

[richardmarcus1509]

It seems many nations are developing their own cryptocurrencies. With all these crazy amounts of quantitative easing, but i am not sure that will these even come out as early as possible lets see

 

[Keithstyles1]

Russia is planning the introduction of its own national cryptocurrency and the banning of bitcoin and all other existing ones, reports the Russian business daily Kommersant.

According to sources of the media from the Federal service for financial monitoring (Rosfinmonitoring), the cryptocurrency will be tightly regulated, its issuers – licensed, exchanging – subject to rules and anonymous payments with it – next to impossible. The new currency would probably lower the cost of financial transactions and provide better protection of the diligent consumes. Russia is also planning to ban the use of all other existing cryptocurrencies because they may be used for financing of terrorism, other criminal activities and money laundering.

Currently Rosfinmonitoring is conducting consultations with Russia’s central bank, the finance ministry, representatives of the banks in the country and other interested parties, but there is no draft legal framework yet, nor a comment from the Bank of Russia.

The eventual national cryptocurrency will not be “mined” by anonymous computers across the world, like the currently existing cryptocurrencies, but will rather have a licensed issuer with responsibilities and rights. Exchanging rubles or other currencies into the Russian digital currency will be done at “designated electronic platforms” under tight rules, mostly focusing on the identification of the clients.

According to Kommersant’s sources, the introduction of the new cryptocurrency will most likely coincide with banning the use of the anonymous cryptocurrencies in the country. This is not a new idea – a draft law in this regard has been published last year on Russia’s platform regulation.gov.ru and representatives of Bank of Russia have openly spoken against the cryptocurrencies and the “surrogates”. At the same time, however, the central bank is looking into the blockchain, the distributed ledger technology underlying the bitcoin, as means to develop new financial transaction systems.

The idea for banning the use of “foreign” cryptocurrencies has been received with mixed feelings by Russia’s financial sector. Alexandr Galitskiy from Almaz Capital Partners told Kommersant that bans are generally a bad idea in terms of international cooperation and urged for the adoption of the existing technologies, rather than banning them. On another hand, Evgeniy Korchago, a lawyer, noted that the cryptocurrencies in Russia are totally unregulated. “If you pay for something in cryptocurrency and you are defrauded, there is no one to complain to. Not a single court in the country will hear your case,” Korchago said and added that the introduction of a regulated national cryptocurrency would be useful for all.

At the same time while Russia is trying to ban the use of bitcoin and isolate itself, Japan is making steps towards legalizing the cryptocurrencies as “regular” means for payment.

Source: smnweekly.com/2016/05/27/russia-plans-own-cryptocurrency-plans-to-ban-bitcoin/

Not surprised

 

[TareqS]

Does that mean it would be regulated by Russian government? If it is, then it would not be like other cryptos. I personally do not think that they would ban Bitcoin.

 

[Dora_WalletInvestor]

Does that mean it would be regulated by Russian government? If it is, then it would not be like other cryptos. I personally do not think that they would ban Bitcoin.

Yes, it would be regulated by the Russian government and you are right, that would make it different from other cryptos, because it would no longer be decentralised.