Even though a number of countries are beginning to see the benefits of cryptocurrency use on a mass scale and are looking towards developing their own cryptocurrency such as China, the Bahamas, and Venezuela, not everywhere in the world is as friendly towards cryptocurrency. In recent times, they have even been instances of countries banning cryptocurrency such as, ironically, China who do not allow the use of cryptocurrency despite developing their own. They are nota number of reasons why a country would ban cryptocurrency which ranges from distrust to economic reasons.

According to recent reports, it seems Russia might be considering implementing a ban on cryptocurrency as a means of payments for goods and services.

Incoming Ban? 

According to the November 29, 2019 reports, this information comes from a few sources that are close to Russia’s central bank, financial regulator and Ministry of Finance. As of now, the law does allow the use of cryptocurrency for e-commerce and a number of Russian freelancers opt to receive payments either in bitcoin or in ether and cryptocurrency has gained fair popularity within the country.

While not officially permitted, cryptocurrency is also used for a number of off-line purchases such as hotel bookings, renting apartments, buying tickets and so on and this is according to Antonov, an analyst at Alpari Information and Analytical Center. Officials, however, want to implement a cryptocurrency ban in order to prevent criminal activity. The report also includes comments from Alexey Yakovlev, deputy head of the banking regulation department of the Ministry of Finance in which he stated that his organization does not see any valid reason to use cryptocurrency as a means of payment.

While the press office of the central bank of Russia has not confirmed or denied these rumors necessarily, they have stated that private crypto should not be equated to fiat currency and are not on the same level in terms of being used as a means of payment.

“If a decision is made to ban cryptocurrencies as a means of payment at the level of legislation, we consider it appropriate to support this position,” they said.

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