One Small Step for Russia, One Giant Leap for Cryptocurrencies!
As we speak Russia is currently in the process of writing a new Bitcoin law.
They are seeking to regulate locally, the trading in Bitcoin as well as all other virtual currencies.
That is a startlingly u-turn from where the country was just a few years ago when they were considering making it illegal to own Bitcoins.
Some details...
The Central Bank of Russia is in the process of preparing legislation focused on regulating and taxing digital currencies.
Nothing is set in stone at this point but reports coming out of the region are saying that the legislation could be introduced as soon as next month and digital currencies could start being regulated as soon as 2018.
The plan is for Russia to officially recognize virtual currencies as digital goods, making them taxable in the same manner. The legislation will also unveil how the government will regulate and monitor the domestic markets.
Why is this startling?
Just a few years ago, in 2014, Russia was strongly considering making it illegal to own or hold bitcoins. The offense was punishable by jail time.
The sudden change of heart comes as the country is finding out what everyone else is finding out, digital currencies are here to stay.
Instead of fighting a losing battle, they have switched sides and decided they better get in front of this thing while they still can.
The increasing popularity of Bitcoin locally and world wide has really forced their hand.
Bitcoin transactions in Rubles:
There has been a pretty strong increase in demand from the region regardless of the government's stance.
What does this all mean for the price of Bitcoin and the altcoins?
That one is a little more murky...
On first glance broader adoption by a country as large as Russia would have to be good news for the entire space. Plus it likely signals that more countries are likely to join the party. Especially if Russia was so against legalizing it just a few short years ago.
However, one thing to keep in mind here is the regulation aspect.
One of the appeals of virtual currencies is their lack of regulation. If Russia shows that they can regulate the markets efficiently and effectively, it could possibly start a trend where other countries go that route as well.
Don't get me wrong, a worldwide regulated currency likely trades much higher than it is currently trading, but it also loses some of it's luster in the eyes of some of it's strongest supporters.
All that being said, lets not forget what Bitcoin has done ever since Japan decided to legalize the currency:
We will see how things eventually unfold, but it seems like this is an important step in eventually getting Bitcoin and cryptocurrencies to be recognized globally as an official means of exchange. Which, in turn, would likely be beneficial to us all.
Now, we just have to figure out how to make sure Steem is one of those that gains a footing as well.
Stay Steeming my friends!
Sources:
http://www.coindesk.com/russias-central-bank-writing-new-bitcoin-law/
https://www.cryptocoinsnews.com/russias-central-bank-could-tax-bitcoin-deem-it-a-digital-commodity/
Image Sources:
https://medium.com/@abarisser/bitcoiners-buying-lunar-real-estate-anticipating-moon-29bbcdf51469
https://news.bitcoin.com/russia-central-bank-proposal-bitcoins-digital-goods/
http://www.zerohedge.com/news/2017-05-20/bitcoin-soars-above-2000-first-time-ever?page=2
Follow me: @jrcornel
Thank you for sharing the good news about Russia here!
Great news comrads! Russia launched Steem-nik for glorious nation Russia! Great crypto race ON! :D
Actually, we have a Голос, our Steem analog in Russia.
And it's hard to get on Steem for us - Steem are blocking Russian cell operators for registration, so we have to use Голоc instead ((
..and what about the freedom of speech?
What is Freedom of speech ? lol that has not been a thing in such along time.
Haha that is awesome. Well done!
why not Golos :D
anyway .. it pays to be first :D
cool!
I hope that STEEM will outweigh the price of the bitcoin
I am not sure that is possible unless Bitcoin falls a lot. It is a matter of supply. Steem has much more supply than Bitcoin. Now I could see a world where Steem trades over $10. Heck, who knows maybe even in the $30-$40 range.
If the price reaches $ 10, it will be overjoyed
Because I really hope so soon to solve my problem with me
I will be overjoyed as well ;)
I wish that my brother
me too
and also will become the new Facebook
This is my first day on here and I can already see this becoming the new Facebook .
Should we expect the US to ban bitcoin now that Russia seems to be opening up to them? jk
Haha I doubt it. I bet the US follows suit at some point down the road... they will be forced to when the rest of the world is transacting in it. They are not in a hurry to lose their world's reserve currency status though.
Yeah it's not going to happen! I think it'll be sooner rather than later as every delay hurts. I wonder how much of a threat they view cryptos to the dollar reigning supreme.
bitcoin is unstoppable
the Chinese tried to stop it and couldn't
they can close the exchanges and it will be more difficult to buy bitcoins but once you have bitcoins - you have it and no one can stop it or confiscate it. (if you have the privet key) :)
it just might . : )
It's interesting that in the end we will essentially need "regulation" for wide adoption of crypto currencies, while the crypto purists are against any kind of censorship, which regulation essential is.
The $1,000 question is how do we get mass adoption (and being feeling safe) without censorship.
Quandary indeed :-)
Personally I don't think it's possible. The governments aren't going anywhere. However, I think they can only regulate certain portions of it. For example they may be able to tax and trace transactions but they can't change the supply of coins in circulation without completely taking control of it.
That is true and controlling circulation is a huge factor with the USD, print print print to solve problems. Won't have that luxury with coins.
Exactly. So, a little regulation might actually be a good thing, no matter how much the purists will hate it. It will give a lot more confidence to mom and pop looking to get involved.
Recent uptrend is just in part due to japan right? Also, i think if russia manages to regulate people will switch to Zcash or other fully anonymous Crypto's, right?
Of course, but governments are gonna do what governments do right up to the bitter end.
Yes it is in part due to Japan, a pretty big part though if you ask me. The Yen had been dominating the trading volume for weeks during it's surge. South Korea has recently been a big player as well. Basically several parts of Asia have been responsible for most of the surge in my opinion.
Thank you for taking the time to answer @jrcornel!
Also, if you'd permit me a minnow question; how does one get to know these things? I read coindesk everyday and allways follow Steemit posts about Crypto but don't seem to become much wiser on the area of causes of surges or drops in $.
Keep reading! Google bitcoin and cryptocurrency and read all the latest news stories each day. You will find yourself getting "smarter" in no time. Also, regarding those trading numbers you can look up Bitcoin volume in fiat terms on an exchange and get an idea of who is doing the buying and selling.
If you scroll down to a couple of my posts from a few weeks ago. I posted a couple images that showed the Bitcoin volume in Yen and KRW.
A possible regulation on the part of Russia would be good because the adoption would be in mass, and the prices would go in the heights.
Those are my thoughts as well. The benefits would significantly outweigh the negatives.
The Russians are intelligent, but I will not know if they try to tax the bitcoin, something that can not be controlled by its essence.
Great post @jcornel I hope steem can become a FB type of status one day and it does become one of the Crypto currencies used in the future.
So there is two of us?! :)
Ha yes there is, at least- right?!?!?
Go Russia.....wondering when my country will get here🤔
Where is your country?
Far away Nigeria, West Africa......
🙄🙂.....yeah i know, we are still far behind.
Regulating it how? I thought that was the whole idea of crypto currency was that the people who were buying it because a fiat system like all monetary systems through out history have failed. Greed in government and that top 1% that control the strings of the puppet politicians have always stole the wealth from the people.
Seems like so much to just grasp on this bitcoin and alt coins...
Here I'm trying learn more and more and it just amazes me how many people don't even know what bitcoin is.