The Bank of Russia Proposes to Ban Cryptocurrency

Russia has a rough history with cryptocurrency especially if Russian President Vladimir Putin sees it as a source of potential threat due to its potential for money laundering and scams. But despite all this, the country is well known for its cryptocurrency use. In terms of Bitcoin mining activity, Russia is ranked third in the world! But its status might come to a close with what its Central Bank is planning. 

Russia Might Be Banning Bitcoin

Just recently, the Central Bank of Russia has announced something troubling for the crypto community. The bank has proposed that the mining of cryptocurrencies and assets should be banned. It even stated that the use of any cryptocurrency should be banned, this crypto ban will even affect crypto exchanges as well. 

Despite this troubling news, the price of Bitcoin has recently moved up showing the potential loss to crypto traders in Russia if ever this ban took place. The reason why the Central Bank is so adamant about this is that cryptocurrency is a threat to economic security, financial stability, and the sovereignty of Russia’s monetary policy so the ban is justified. 

Furthermore, the bank mentions that crypto growth is simply the result of speculation, and the assets it produces are nothing by pyramid schemes if you look at it with clear eyes. This will endanger both the crypto users and the country’s financial system as well which is why cryptocurrencies are a big threat. 

Aside from the threat of crypto in general, the bank mentioned that crypto mining is endangering the energy supply of the country. Especially the green energy planes it has since crypto mining is known to produce large amounts of CO2 emissions potential endangering the environment. 

Lastly, the bank stated that the ban won’t affect offshore crypto holders unlike the policy with China. Despite all these points, the Russian crypto community seems unafraid and unaffected by the news of this ban. Some experts even suggested that this ban may not affect the crypto market as much as it did China. 

Conclusion

This news is another big blow to the crypto community considering that Russia is one of its biggest users. However, people should take into account that this is the stance of the Central Bank and not Russia as a whole since some ministers and officials have different views regarding cryptocurrency. 

* We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.