Well, Russia’s newfound love for bitcoin and cryptocurrency really didn’t last too long. Then again, one wonders if that love ever existed to begin with. Russia is now saying it wants to ban all cryptocurrency payments and that all crypto users and owners must be identified, thereby bringing privacy to an all-time low in the sector.
Russia Says “No” to Crypto
Bitcoin and digital currencies were invented to give financial power back to everyday people. One of the powers they are alleged to have through crypto is extreme security. Their identities are not necessarily given with each transaction that occurs. Money transfers occur through digital addresses that can, however, be traced back to a user.
Through that end, a crypto customer can potentially be identified, and it looks like Russia is planning to use this little loophole to its advantage. The country has long been in a battle with itself regarding what should be done with cryptocurrencies. Now, it appears that the nation is looking to ban them altogether and prevent crypto from earning a spot alongside entities like cash, credit cards and checkbooks.
A letter from the Deputy Prime Minister Dmitry Chernyshenko states:
A decision was made following a meeting in the government to establish a ban on the issuance and use of cryptocurrencies as a means of payment.
The ban will be imposed by Russia’s Federal Security Service (FSB) and its Central Bank. The strange thing is that these two organizations strongly opposed one another at a certain point. While the Central Bank of Russia has never shifted in its position that crypto should be fully banned, the FSB has often stated that it is open to crypto granted it can be monitored and regulated by lawmakers.
The contradictions don’t quite end there. In the past, Russia’s prime minster Mikhail Mishustin has stated that taxing cryptocurrency was one way to go. In addition, the country has also commented that while crypto users couldn’t necessarily use their digital currency to pay for goods and services, they always had the option of cashing them out for funds that could be utilized at general retailers.
The big problem though, is that all users of crypto would have to identify themselves with the FSB from here on out.
No Competition, Please
Now, however, it looks like all the contrasts have come to an end and both entities, the Central Bank and the FSB, have decided that digital currencies are evil and must be shut out of the monetary arena.
Despite all this, Russia has stated in the past that it is looking into the notion of potentially building its own digital version of the ruble, the country’s national fiat currency. A crypto ban could potentially be designed to alleviate all competition directed at the new financial entity.