Russian government to treat Bitcoin as legal tender !
On the back of adoption last year of El Salvador adopting Bitcoin as legal tender and with Tonga about to do the same, we now have this incredible news from Russia.
Russia’s government and central bank are now working on a draft law that will define crypto as an “analogue of currencies” rather than digital financial assets which was set to be launched on Feb 18. Cryptocurrencies would function in the legal industry.
Kommersant noted that Bitcoin (BTC) transactions and possession of cryptocurrency in the Russian Federation are not prohibited; however, they must be done through a “digital currency exchange organizer” (a bank) or a peer-to-peer exchange licensed in the country.
This news comes after months of speculation about how the Russian government will handle digital currencies. While it is still unclear what this decision will mean for businesses and citizens in Russia, it seems that the country is warming up to the idea of cryptocurrencies.
In January, the Bank of Russia called for a nationwide crypto ban in a report that warned about the speculative nature of the industry. The bank also stated that financial firms should not facilitate crypto transactions as part of that proposal to ban digital assets.
However, the proposal generated opposition from the Russian Ministry of Finance. A few days after the central bank’s call for a ban, Ivan Chebeskov, a ministry official, said that the government should regulate crypto rather than prohibiting it entirely. He warned that a total ban might result in Russia falling behind in technology.
Reports have also emerged that President Vladimir Putin supports efforts to regulate the country’s crypto mining sector.
With Russia and Ukraine about to be embroiled in another skirmish, the fallout would inevitably be worldwide sanctions on Russia causing hardship for many. However, this initiative gives their people the opportunity of generating financial sovereignty and the ability to detach themselves from the implications of a falling Ruble and inflation which has now become the scourge of most governments thanks to the uncontrolled money printing.
Thanks to the latest round of global market corrections lower, we all now have a golden opportunity to pick up the world’s rarest and most desirable asset at a knock down price of 40k (as of February 13tth)
While we see more institutions, banks and hedge fund managers add to the growing list of adopters, the current prices are a wonderful opportunity to gain financial independence over the coming years. In my view and that of many professional investors, we will likely see a huge adoption curve over the next three or four years and the fixed limited supply of just 21 million Bitcoin should see the price rise to well over 100k per coin towards the end of this year.
Financial services firm Wells Fargo says that cryptocurrencies are viable investments that have now entered the “hyper-adoption” phase. “Cryptocurrencies have been following an adoption pattern similar to other new advanced technologies, such as the internet,” the firm’s global investment team detailed.
Statutory warning …..
As with any investment, prices can go down as well as up, so only invest money you could potentially afford to lose.
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