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Russia does not want financial innovation, and it will harm the nation
Yes, limiting access to bitcoin and technology will stifle financial innovation, and it is something that all nations should think through, even the United States. BitLicense in New York State is doing everything it can to keep bitcoin and related companies from operating in the state. It can also be considered as a move to stifle financial innovation. Other countries can take Canada as an example when it comes to bitcoin regulations, in order to ensure unhindered innovation in fintech sector.
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Russia does not want to disturb its precious ecosystem bubble by allowing bitcoin to thrive
Every action has consequences, same with bitcoin regulations. Bitcoin transactions is a two way street. It allows outflow as well as inflow of funds. The current situation in Russia calls for strict economic controls in order to ensure the stability of its economy. The country is currently hit with sanctions. There are restrictions on flow of commodities as well as currencies across borders. The country has to prevent excess outflow of funds to maintain liquidity in the country. Otherwise, the economy may potentially crash, causing a repeat of the Greek fiasco, unless the geopolitical situation improves.
However, controlling bitcoin in these conditions also prevent inflow of funds, which otherwise can strengthen the economy. It is a judgement call, either risk the downfall with hopes of strengthening the economy, or protect what is left while missing potential gains.
All these justifications apart, the decision to control bitcoin usage in Russia is a loss for the bitcoin industry and the community itself.
Disclaimer: The opinions expressed herein are those of the author and do not necessarily reflect the views of Live Bitcoin News
I see, I think and I do… passionate about digital currency, start-ups and social good. I believe that if you mix them right, you can change the world. Find me @gautham_n on twitter or /gautham,nm on facebook
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