For the second time, the Russian government is considering a ban on Bitcoin and other cryptocurrencies in the country. A draft law is already on the table, and the state news agency, NSN, has reported that the government is working on a bill to prohibit the circulation of cryptocurrencies in Russia.
According to the proposed law, the government plans to restrict the use of cryptocurrencies, allowing only state-recognized digital currencies to circulate. Experimental efforts around mining and central bank digital currencies (CBDCs) would be the only exceptions. Russia is one of the world's largest Bitcoin mining hotspots.
The government cites the reason for the ban as the fact that cryptocurrencies have become a quasi-currency, threatening to replace the Russian ruble. The law aims to ensure the "monetary unity of the country" by prohibiting the use of cryptocurrencies.
The proposed law is expected to come into effect on September 1st of this year. Russia's stance on Bitcoin has been ambivalent, with some central bank representatives advocating for a complete ban, while others in the government support a more moderate approach.
In May last year, the government scrapped plans for a state-owned cryptocurrency exchange. Meanwhile, Russia is working with other BRICS nations to develop a new global currency independent of the US dollar.
The implications of this ban would be far-reaching, affecting not only Russian citizens but also the global cryptocurrency market. The ban would likely lead to a significant decline in cryptocurrency mining in Russia, potentially disrupting the global supply chain. The move would also undermine the country's position as a major player in the cryptocurrency industry.
As the world waits with bated breath to see how this development unfolds, one thing is clear: the Russian government's stance on cryptocurrencies is a reflection of the ongoing struggle for control over the global financial system.
For more Cryptocurrency and Finance news, check out our Blog: https://finixyta.com/crypto/japanese-firm-metaplanet-invests-6-25-million-in-bitcoin-boosting-stock-price-by-90/