Bank of Russia looking to legalize Bitcoin

In an interesting move, the Bank of Russia has changed its stand on the idea of Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term and signals it is ready to legalize the cryptocurrency and fully allow its use as a legitimate currency.

While Bitcoin may not have the brightest of histories, legalizing its use can give the bank the ability to closely monitor and regulate its use throughout the region.

“We advocate a careful approach to bitcoin and are monitoring the situation along with the Bank for International Settlements. One can’t ignore this instrument, maybe this is the future,” stated Georgy Luntovsky, the Bank of Russia’s Deputy Chairman to Russian news outlet Gazeta.ru.

In the beginning of this year in January the Bank of Russia issued a statement strongly discouraging residents to steer clears of Bitcoin due to the anonymity factor behind it, claiming it can result in illegal activities such Money Laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term and financial terrorism. Other claims such as its high risk value were also mentioned.

Is Russia now approving of Bitcoin as no future sanctions can be imposed in time of a crisis?

Given the payment situation as of late in Russia as a result of the crisis in Crimea, left us to wondering. Is Russia now approving of Bitcoin as no future sanctions can be imposed in time of a crisis?

In March, after being warned by the US government not to invade the Ukraine, US sanctions forced the 2 largest card companies, MasterCard and Visa, to freeze out Russian accounts. Since then operations have returned partly to the region, leaving the firms to now comply with Russian restrictions to prevent such a “freeze out” from happening again. A partnership with China UnionPay has also been reported, in order to build a national payment scheme intended for Russian card holders only.

The legitimate use of Bitcoin as a recognized and regulated currency would not give any other foreign authority the ability to freeze funds or accounts. Recognizing Bitcoin is also a highly more affordable approach, eliminating the need for local payment infrastructures, as Bitcoin has its own integrated payment network.

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