Russia Dancing The Bitcoin Blues With China While America Can Become The Ultimate "Crypto Tzar"

in LeoFinance4 months ago

Russia, for this part of the world, is the pure example of communism that has never been abolished, but slightly rebranded and reshaped. Vladimir Putin is the model of a communist leader and there's not much differences between China and Russia in their approach towards governance.

I guess the only differences are in economy, and technology used for and against the people. It's boiling all over the media right now that the Central Bank of Russia is calling for a total ban on trading, mining and dealing with cryptocurrency.

It's just a proposal for now, worth mentioning being the fact that crypto payments are already forbidden in Russia, but knowing Russia and its communism flavor that smells from thousands of kilometers away, I wouldn't be surprised if the so called ex-communist country would "make the ban happen".

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The bank, therefore, suggest Russia needs new laws and regulations that effectively ban any crypto-related activities in the country. In particular, cryptocurrency issuance and organization of its circulation in Russia must be banned. The ban should apply to exchanges, over-the-counter trading desks and peer-to-peer platforms. Russian institutional investors should not be allowed to invest in crypto assets and no Russian financial organizations or infrastructure should be used fro cryptocurrency transactions. And the existing ban on crypto payments should be more aggressively enforced.

But why, sir?

Isn't it obvious... They can't afford loosing control over the people's personal finances and they want to further enhance that, same as China. The discussions around a digital ruble are no longer headline news and the fear of the government towards the new type of money(cryptocurrency) being able to undermine the national currency of Russia makes perfect sense for the country to ban everything crypto related in the country and use the tech to create their own digital money.

There's a caveat to that. Russia is currently ranked 3rd in hash power after the US and Kazakhstan. Kazakhstan is no longer a crypto friendly country due to the conflicts over there and the miners are definitely searching for greener pastures. IF the law will come into place regarding the supposed ban miners activating in Russia will have to move.

America so far has proved to be more crypto friendly than all of the other countries mentioned in the post. We have governmental figures advocating crypto over there, mayors that are being paid in Bitcoin, senate candidates calling for crypto adoption and use and quite a decent percentage of the "Chinese crypto miner refugees" who have located themselves in North America.

Hence, I believe that if Russia will blanket ban crypto as well, much of the hashing power will move to the US considering the more friendly approach the Americans have towards crypto, and that's when America shall become the ultimate crypto tsar. Funny how China had it all in its hands, but blew it away and the US had basically nothing to do to attract miners and HODLers as well, but it seem to be doing so effortless.

Meanwhile Bukele and Erdoğan are meeting right now in El Salvador and we might have the Turkish president turning 180 degrees in his war with Bitcoin. Bukele seems to be quite persuasive when it comes to Bitcoin. The way I see it there's a segregation process currently happening in the world and we don't have all the cards on the table yet. I do believe though that the ones who will know how to play their cards right will benefit immensely from the use of blockchain technology.

Thanks for attention,

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Thanks for these insights, @acesontop!

Actually, everytime I hear of a new cryptoban (like in China & Russia) or a new "regulation" framework being adopted (like in India, with the same goal of putting cryptos under control of centralized political structures), I go back to Eric Voskuil's theory about the BTC expansion - which I'd say is applicable to all first generation autonomous cryptos, the ones genuinely attempting to run in a decentralized fashion.

Voskuil wrote some years ago: "This conflict between state and individuals for control of money will pass through up to four phases anticipated by the Bitcoin security model. These may overlap and vary regionally, but are each clearly identifiable.

Black Market

We're now entering the Black Market phase, where the States coertion - including in the United States - will make us come back to "the roots" of purely peer-to-peer and privacy protecting crypto networks.

The Fed seems to be ready to launch its CBDC this year, or at most in 2023. Voskuil forecast it too: "As states collaborate to protect their monies, this may become a global "War on Bitcoin". This may coincide with adoption of an official new money, i.e. Fedcoin. The objective would be to appear to embrace a "safer" money than Bitcoin while retaining the seigniorage and surveillance advantages of electronic fiat."

That's why I've never accepted any KYC, and have a huge confidence in Hive as an infrastructure built to resist even the physical seizure of a part of the Witnesses servers.

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That's interesting indeed.

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A lot of interesting bedfellows in this one. We are seeing governments falling on both sides of the fight.

The key is to keep expanding and growing the network effects. It is really simple math, the more involved, the less power the opposing forces have.

Since governments cant stop the illegal download of music, they are ill-suited to stop this. In fact, the bans will only incentivize the developers to create workarounds.

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Some are oppressive, others opportunists. Just depends upon the perspective.

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Now I wonder if the US will do something like ban crypto mining as well. We aren't a communist country but the current party in control is pretty authoritarian right now. So I wouldn't be surprised to see some states just outright ban it with some informal executive order by the current party.

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You guys are going to have your own digital dollar pretty soon.

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Not likely. I do not think that goes through on Powell's watch.

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Very interesting. I would prefer that Ersogan does not touch Bitcoin as he is one of the worst politicians out there… I would prefer that Bitcoin was not associated with him as we would become target.
What are your thoughts on this?

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The citizens in Turkey are flooding towards Bitcoin because their Lira is devaluating at a high pace.

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Oh yeah and they should ! I just would like to not see news like "Erdogan embraces Bitcoin", etc... I prefer Turkish citizens use Bitcoin to escape financial ruin due to their corrupted and authoritarian government

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It's exactly what happens.

Quite the interesting post. Sometimes we forget the Russian Government is just as totalitarian and communist as the Chinese Government. Putkins western clothing may look different from the Uniform like clothing of the Chinese or North Korean leaders, but that is a superficial difference.

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Most of the government are democratic and their decisions are diplomatic lol. I want to see crypto as my future currency, its already changing lives and government should realize the importance of digital currency. We should update or upgrade with the time that all I believe. Your blog deserves attention so here we come. Thanks and share more in LeoFinance. Looking forward...!!!

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Is there any good reason to justify countries banning crypto mining, I don’t see any. It is only a matter of time

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All this country that's banning crypto currency. I believe Soon they will still join back because of the future of Crypto currency

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I don't know what's happening to the BTC now, people are adopting it much now. I don't know if is what's causing heavy sell on crypto market.

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