Following China, Russia has become the latest country to take a hard stance against Bitcoin, with the ramifications being felt throughout the cryptocurrency industry. The Central Bank of Russia has proposed a full ban on the trade of cryptocurrency, claiming that it will do irreparable harm to the country’s current financial framework.
In addition, the Bank pushes for a complete prohibition on cryptocurrency mining within its borders. The prohibition on cryptocurrency mining is hilarious, given that Russia is the third-largest crypto mining nation in the world, behind the United States and Kazakhstan.
According to research, cryptocurrency is nothing more than a pyramid scam.
Elizaveta Danilova, director of the Bank of Russia’s Financial Stability Department, delivered a presentation on the study titled “Cryptocurrencies: Trends, Risks, and Measures” during an online news conference. According to the analysis, cryptocurrency is a highly speculative investment that is similar to a pyramid scam. Cryptocurrency, according to the report, is frequently utilized by criminal and narcotics syndicates to launder their illicitly obtained money. Furthermore, because of the anonymity and decentralized nature of cryptocurrency, it is an excellent alternative for criminals and terrorist organizations.
The research also accuses cryptocurrency of undermining existing financial regimes and weakening monetary policy sovereignty by providing citizens with a means of withdrawing their money from the national economy, as documented in the report. Finally, the research emphasizes that Russia’s green agenda is jeopardized by the energy-intensive crypto mining industry, which poses a threat to the country’s energy supply.
The Central Bank of the United States proposes stiffer penalties.
The Central Bank of Russia has stated that the dangers linked with cryptocurrency are extremely significant for emerging markets, which include the Russian Federation. In Russia, the use of cryptocurrency as a payment mechanism has already been prohibited. Mutual funds are likewise barred from making investments in cryptocurrencies in the country. Ironically, the country ranks third in the world in terms of cryptocurrency mining, behind only the United States and Kazakhstan.
It is not in the interests of the Central Bank to establish its digital currency, as is the case with many other Central Banks throughout the world. It has also made no proposal to make the possession of cryptocurrency unlawful. It, on the other hand, seeks tougher penalties for individuals who break the law as it currently stands.
According to the latest news, Bitcoin values have plummeted from around $43,200 to just under $39,000 in the previous 24 hours.