Russia Responds to Bitcoin

BitCoin Civil War

Bitcoin has been by far in a way the greatest beneficiary of the recent advent of blockchain technology. The price of Bitcoin has soared over the past year by well over 600%. The response, however, has been mixed globally.

Nations Speak Out Against BitCoin

Just in the past few months alone there have been multiple nations that have not only spoken out in response to Bitcoin but also taken action. Thus far, the most notable response has been from China. The Chinese government had chosen to shut down cryptocurrency exchanges demonstrating their defiance against the corruption that has been accompanied with these new digital currencies.

One of the greatest issues has been the ability for many to evade taxes and launder money because of the lack of visibility and decentralization of the currency. All of these factors have culminated in a response from the Russian Central Bank.

Sergei Shetsov Issues Crackdown on BitCoin

Sergei Shetsov, the First Deputy Governor of the Russian Central Bank had vocalized the response that Russia is going to take to crack down on digital currencies. He stated that Russia’s central bank will block websites of exchanges that currently offer cryptocurrency investment options. This is clearly a response to the unlawful activity surrounding digital currency. Shetsov also explained that he feels that the large volume of returns that have occurred over the past few months could represent that the currency is a pyramid scheme.

Shvetsov clearly has demonstrated the threat that all cryptocurrency has to the Russian Central Bank and the Russian market. This was confirmed when Russian president Vladimir Putin echoed that there is simply too much corruption to watch from the sidelines without taking action.

While corruption is clearly accompanying cryptocurrency, there is also an effort from Russia to understand the technology and accept that it is a way of life. These statements came from the Russian finance minister Anton Siluanov. He continued to elucidate that there should be a legal framework allowing these operations to occur legally and within government regulated boundaries.

Cryptocurrencies Market is Triple the Size of Estimates

Russia Completely Against BitCoin

Russia’s response to cryptocurrency has been much different than that of Japan. The Japanese government had demonstrated its support for cryptocurrency and blockchain technology, taking steps to make it a legalized tender in the Japanese market. The digital currency market took a few steps backward after the Chinese government shutdown cryptocurrency exchanges, but has since bounced back. Meanwhile, many other nations have yet to come to a consensus or take action.

The CEO of JPMorgan, Jamie Dimon, vocalized his disgust with Bitcoin and digital currency. On the other hand, some American based companies, such as Amazon, have been rumored to start accepting Bitcoin as payment.

The response from Russia clearly highlights the global threat that Bitcoin has on traditional currency and the central banking system. It remains one of the greatest hurdles for the success of Bitcoin and other digital currencies.


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