August 13th, 2018
Bitcoin has become popular across the globe. Developed countries are taking initiative to legalize digital currencies. Russia has been against the use of digital currency, but some lawmakers are supporting the use of bitcoin for investments. This new craze is making it easier for consumers to buy bitcoin online. In the last few months, several bitcoin ATMs have grabbed the attention of digital currency users. As of today, there are over thirty Bitcoin ATMs installed across the country. With new investors eyeing the ATM business, this number is expected to grow by years end.
Lawmakers in Russia are coming forward in support of bitcoin and its implementation. Foreign investments are important and they find cryptocurrency legalization can help this cause immensely. This statement came at a time when a popular ATM operator planned to install over 100 machines in Moscow in year’s time. Digital currency transactions are increasing considerably; legalizing it here will certainly help open prospects for new businesses.
Proposal to Legalize Bitcoin
Sergey Zhigarev, the chairman of the State Committee for Economic Policy proposed recently the importance of legalizing digital currencies. The growing development and craze for digital economy can’t be sidelined, legalizing Bitcoins and other digital currencies will open up many new opportunities. This will help users buy bitcoin online. He also added that this revolutionary move will attract many foreign investments, especially from countries which have imposed sanctions.
According to him, legalizing of Bitcoins as a mean of payment will help in attracting investments from foreign soil, including developed Western countries. This is definitely an instrument which will attract the capital necessary for growth, a move which will certainly help Russia grow.
ATMs in prime locations around the country are expanding. Transactions through these ATMs are also increasing, a clear sign that Bitcoin will be accepted as a viable option to fiat currency. With the legalization of Bitcoin, there will be a huge transformation in the financial and banking system. He also believed that large companies or businesses with their own digital currency could enter the market. This will lead to a birth of new market, which will be open and free.
Government’s Domination Challenged
Zhigarev explained at a meeting that for the first time in Russian history, the government’s dominance on the production of money is a threat. It is an irreversible process which is quite difficult to control; cryptocurrencies which are backed up by real assets have good prospects. A few months back the deputy chairman of the Bank of Russia called digital currencies as a dangerous investment because of its high volatility. She is against the legalization of Bitcoin as these cryptocurrencies will be dangerous for the Russian economy.
However, the Finance Ministry is working with the Bank of Russia to establish a legal framework for bitcoin and other digital currencies. Recently, Ministry of Finance published a draft bill for regulating bitcoin and other cryptocurrencies. Though few are coming up in the country, there are few challenges which may create complexities for digital currency regulation in the country. However, this is creating a larger usage of consumers who want to buy bitcoin online. Lack of infrastructure for transferring digital currency into fiat is an issue. Positive statements from lawmakers are also helping the cause. It’s now up to the government and concerned authorities to take a step forward in legalizing bitcoin in this part of the globe.