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| Snowy Days in Russia |
Times
are tough in Russia. The Ruble has lost about 50% of its value versus
the dollar. The West is levying economic sanctions against them for
their military actions in the Ukraine. And the Russian Ministry of
Finance earlier this year drafted a bill to ban Bitcoin and other “quasi-money” in 2015.
Also read: Indicators Show Russians Trading Rubles for BTC
Russia reconsidering Bitcoin?
Could Bitcoin make it back into Russia?
The latest news
is that the draft law is in need of major revision as the Russian
Ministry of Economic Development has not approved the draft in its
current form. This is certainly not because of the desire to enhance
freedom and liberty for Russian citizens, but because it may hurt
Russian corporations ability to attract new business. The “quasi-money”
designation includes things like gift cards and certificates that
businesses use to bring in new customers. Banks, major retailers, and
telecom companies would take a huge hit, and with the national
GDP/economy is already having a terrible year, this bill does more harm
than good overall.
“The proposed draft regulation act doesn’t solve any
tasks assigned, but only serves to create legal barriers to the
implementation of marketing programs of businesses and business
development in general,” according to the Ministry of Economic
Development.
The issue with nation-states attacking Bitcoin out of defense of their currency is a complicated one.
Many nations are in debt
due to their debt-based fiat currency/central banking system. The
current inherently flawed system is designed to leave nations indebted.
Bitcoin and it’s potential growth leave open a way to build new
businesses, generate new revenue streams by attracting investors, and
ways for future taxation to help alleviate the nation’s indebtedness.
Russia’s previous hard stance against Bitcoin was taken before many of
their current economic issues and sanctions manifested.
Russia’s economic situation may continue to spiral downward, as they
may soon suffer from restriction of access to the global financial
system. In particular to the payment system SWIFT (Society for Worldwide
Interbank Financial Telecommunication, which supplies secure messaging
services and interface software to wholesale financial entities. An
international banking computer partnership). Some critics say the
government should pay more attention to financial innovations instead of
trying to ban them.
Does this mean Bitcoin is in the clear? Not exactly. The bill most
likely will be revised, but it may just benefit Russian corporations,
but still restrict Russians ability to use electronic currency. The ban
may just work around gift cards and bonus cards and remain for digital
currency. The nature of the extent of the revisions remains unclear.
Russia and bitcoin have not exactly been on good terms. The country
showed a particularly strict attitude towards the digital currency and
was looking to enforce a ban
that would threaten any users with heavy fines and other forms of
punishment should they engage in the “pleasures of bitcoin.” It appears
that while on the playground, Russia had primary control over the
sandbox.
However, now that sandbox is possibly up for grabs. Following the
Ruble’s massive drop in value, the country seems to be reconsidering its
approach to bitcoin and digital currencies, and the ban it was once
aiming to integrate in 2015 may become a thing of the past.
Russia’s Ministry of Economic Development
is frowning upon the current draft law outlining the potential ban and
its related prohibitions. The agency believes that the law as is could
damage major retailers, banks and telecom operators alike, and that
several risks may arise over time:
“The proposed draft regulation act doesn’t solve any tasks assigned,
but only serves to create legal barriers to the implementation of
marketing programs of businesses and business development in general.”
Other issues being speculated include the role of gift cards and
certificates, which are listed as “quasi-money” and aren’t fully
outlined in the current draft. According to RBK News Agency, the
lacking specifications “could throw [Russia’s] payment service market a
few years into the past, leading to a fall in the number of non-cash
payments for goods and services.”
The law is now facing several revisions.
