Reportedly, Russia is considering a ban on the use of cryptocurrencies to pay for goods and services. Thus, people who are used to paying for things with bitcoins will face tough times.
Some economists are perplexed as all developed countries are trying to make digital currencies more widespread and less intimidating for people. Against such a background, Russia's attempt to prohibit its usage looks like a way back to the Digital Middle Ages. "We believe there are big risks of legalizing the operations with the cryptocurrencies, from the standpoint of financial stability, money-laundering prevention and consumer protection," Russia's central bank head of legal affairs, Alexey Guznov said. For this reason, the Central Bank has decided to revise the status of cryptocurrencies in the Russian financial system. Presently, Russians can use digital money as a financial asset. However, some analysts warn that this will not last long. In addition, the law defines digital financial assets as "digital rights, the issue, accounting and circulation of which is possible only by making entries in the information system based on a distributed registry (blockchain)." It is allowed to use cryptocurrencies as collateral, in purchase and sale transactions, for exchanging one type of digital asset for another (including those issued by foreign miners), but virtual money in Russia is prohibited from being a means of payment. Last but not least, all transactions with the virtual currencies should be under the full control of the authorities and should be conducted only through the exchange operators of digital financial assets.
Moreover, the Bank of Russia has the right to determine the features of a digital asset that unqualified investors can acquire and limit the amount of their investments in such assets. In other words, it can forbid anyone from investing his or her savings in a cryptocurrency.
