Bitcoin Forum

What is the possibility effect of this in both side
Are this  a good thing to happened
https://www.bloomberg.com/news/articles/2018-02-12/why-governments-might-join-the-cryptocurrency-craze-quicktake

Maduro is pushing petro to get away with the US led sanctions against them. Well, he says they raised tons of money, but I don't believed that is the case.


Again, this is totally wrong. Russia has no plans to adopt crypto currency. They already have cryptorubles which they created to satisfy Russian's population appetite for crypto. But I don't think it will be enough to swayed them.

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I won't go into details because there is a lot of contradictions, flawed argument on this article. Short term, government going against crypto is bad for us. Long term effect, crypto is unstoppable not even Russia or China can stop this revolution.

I heard this news Until July 1, 2018, the government and the Russian Federation should determine the legal status of the country's crypto currency and also determine the taxation for mining.

In this case dollars domination will be hinder because bitcoin would be the popular currency that would dominate the world economy that is the European countries and and US government is now studying the possibility to use Blockchain technology on their advantage, because they know if they don't act accordingly they don't have control.

I hate this. Although this might have some benefit for cryptoworld, but for us users/owners of coins this might be a problem. Government can and will take advantage of this by taxing and basically manipulating its prices by centralizing or monopolizing. I love the crypto world for its limitless increase in value. Also because it is not governed by one man. The crypto world is an open world of growing opportunity, and to see the government join this hype train is terrifying.

There is no other way, yes it is all the risk of us all, now most users / communities waiting for the legality of crypto in each country, there will be a comprehensive arrangement, we wait for the results hopefully tax arrangements and everything is not too burdensome us as users, I think forever will always be profitable for users, will you leave the profit forward? I think you should think positively, do not make you depressed.

This could be one of the main reasons why some countries would come up with their own cryptocurrencies, to avoid sanctions. The issuance of Petro was such an attempt and there have been reports that Iran and Russia are planning to create their own cryptocurrencies to evade international sanctions. Decentralized currency transactions might not be detectable to an extent, but government issued cryptocurrencies would still have all the centralized characteristics of fiat and the flow of exchange could be detectable to uncover sanctions violations. It wouldn't be wrong to assume that a few countries that are being affected by sanctions made by the US government would try to come up with their own cryptocurrencies. For the rest, state-sponsored cryptos would be more of a digitalization tool, cashless society and to have stringent control over the finances of their citizens.

I think it will be tight for other developers who wants to create new token or coins if every country decide to create their own crypto.  This will definitely open a way to establish blockchain technology era but will kill the decentralized idea of it.  Government will definitely oppose any crypto that is not regulated by the government and might end the era of decentralized crypto.

im glad to hear that, I hope its to be happen in my country

In Russia, they always say a lot but do very little. For example, I heard that Russia is seriously considering the possibility of disconnection of the global Internet and the transition to Runet. How in such conditions it will be possible to use cryptocurrency? For me, Russia is not a country that can somehow influence the situation in the world.

Many countries are moving towards a cashless economy, this started before Bitcoin was created, electronic payment systems and then Bitcoin/Blockchain happened. As the Blockchain ecosystem is evolving, more governments are studying it and a few think that Blockchain technology could be used to create a new digital financial system which would be more efficient and cheaper than the existing one. If I exaggerate, for governments Blockchain technology might be a catalyst to push their cashless society agenda, centralized cryptocurrencies.

With Bitcoin, not only Blockchain happened, but also the idea that decentralized money without governments can exist. Decentralized, security, privacy, trustless. With centralized cryptocurrencies, it would be the exact opposite. Two different terms, technology adoption and technology acceptance, might sound similar, but different. I guess most of the crypto users have adopted, not merely accepted Bitcoin/cryptos/Blockchain for the very reason, decentralized. If governments issue their own Blockchain-based cryptocurrencies, it would be accepted, might even be enforced to adopt. A whole new decentralized ecosystem is evolving, opposition from governments wouldn't simply end it.

If government and crypto collide,  then it will be the end of fiat money,  also I think it could help the economy of a country grow. But I think crypto and government won't collide,  not this days but maybe on the future. 

This cannot be a good thing for two reasons :

1. The government that initiated the sanctions, might turn against Crypto currencies, because it is used to bypass their sanctions. <The US government will ban the use of all Crypto currencies, if this becomes a trend.>

2. If all governments have their own Crypto currency <GovCoin>, people will invest less money into Bitcoin and other Alt coins and these governments might even ban other Crypto currencies and only allow their own GovCoin.

Nothing good can come from this, mark my words.  >:(

The future of cryptographic digital money is indeed bright. Because this is the direction of human evolution.

The government needs to regulate the digital encryption money, protect the interests of investors, and guide the digital encryption currency to the correct road development!

A large perecent of the money laundering that it being held in Russia, comes from cryptocurrency.
We heard a lot of stories about Mafias in Russia that pump cryptocurrencies in order to launder money( they invest legit money, and then pump the coin with black money in order to launder, and they do success as the government has no idea how to deal with them.)

I believe that if the Russia government will finally have a statement about cryptocurrencies it's never going to be a positive one.

It's honestly too early to tell. Petro would have been a good indicator as to how a government backed crypto can affect everyone as a whole, but everyone seems to be against it. As far as precedents go, coins that are made to bypass regulations look like they're doomed to fail. They're not going to be able to win over anyone's confidence, not even their congress', as shown by Venezuela's case. China's supracurrency sounds great because it covers 40% of the world's population, but let's not forget that existing cryptos cover 100%; we can probably expect anti-crypto regulations from them to level the playing field, but the question of user support remains.

For now, crypto does compete with fiat in a sense, and most governments aren't banning it, so I'd like to believe that the rise of state-backed crypto won't mean overbearing regulations. Also, if crypto as a whole becomes commonplace, then so will Bitcoin and the major alts -- so that's a potential pro. We'll see though, I guess.

Governments will have to deal with non-sovereign currencies very soon.

You can't wish away such problems as money laundering and terrorist financing by saying, "It can be done using these things, so these things must be against the law. And because they're against the law, they'll cease to exist."

Realistically, the world's governments will need to find a policy that allows for the legitimate use of cryptocurrencies. They will also need to make changes to the way they form and support monetary policy so that their own fiat money doesn't become irrelevant. On the flip side, cryptocurrency issuers will need to provide some means of responding to the civilized world's legitimate concerns about criminal activity.

I wrote a couple Medium articles on this topic.

https://medium.com/@WilliamFreedman/whats-so-special-about-being-sovereign-f64a6765a7f4

https://medium.com/@WilliamFreedman/poor-misunderstood-bis-needs-a-hug-28c92a5de99d

The Governments are always looking for a way to get involved in the crytocurrecy market so that they introduce taxes and regulations that will favor their selfish purpose,if this take place

I liked the article . It just told about the governments considering to adopt crypto currencies and which are the countries involved in it . I think that is a two sided game for sure . None of the sides is going to be at the loss . It will be best for the governments to adopt and promote crypto currencies because now or tomorrow they are going to adopt it if we just consider about its popularity . That is just going to benefit both of them.

The Petro angle is the major reason Donald Trump is getting restless over cryptocurrency being legalised. If the Venezuela experiment works out fine and Petro becomes a success, other anti-America establishment and governments will quickly switch over to enjoy immunity against the endless America sanctions. It isn't just with Iran and Russia, in Africa Zimbabwe will expectedly be the first of such countries. The US knows this and is aware of the ripple effects that success will cause and is fighting doggedly to frustrate that.

this is because too much to discuss about this. so there will be a lot of speculation. which ultimately creates two classes of pro and cons. but still we should be able to review from both sides so that there will be no failure in an assessment

The State Duma of the Russian Federation intends to amend the current legislation by imposing a 13% tax on personal income transactions on individuals and individuals and registering the possibility to collect digital currencies from debtors-bankrupt.
The bill proposes to consider mining a kind of entrepreneurial activity. Miners will be required to register as individual entrepreneurs, however, the legislators do not negotiate the taxation system for them: the miners will be able to choose it independently.

There is a difference between the centralized cryptocurrencies that are issued by governments, such as the Petro issued by the Venezuelan government, and the decentralized cryptocurrencies such as bitcoin which are not controlled by any single entity.

Governments obviously are interested in the centralized version, because it actually gives them more control. They are only using the blockchain for their own benefits whilst retaining all control that they have gotten.

In that case, it doesn't really make a difference whether governments choose to issue these cryptos or not. They are not relevant to the decentralized crypto market. Only thing though is that the general public will be misled into investing in these national cryptos instead of actual decentralized ones. IMO, they're not even worth looking at since they are simply fiat or government issued bonds in a different form.

Reading on that article, it seems a lot of countries are eyeing on making their own currrency controlled by their government. Thus basically defeats the purpose of bitcoin or blockchain as a whole. The attempt of bitcoin is to make a currency accepted by the whole world in order to avoid fees in converting from one currency to another. Bitcoin is supposedly the global currency. But these countries wanted different things henceforth they make their own cryptocurrency.

These governments i think only wants to use the blockchain technology to track down and gain control over their peoples money. Decentralization has always been the reason why bitcoin was materialized. With government attempting to incorporate this technology, it only defeats that purpose. To invest in a currency controlled by the government and central banks is really unwise. I hope people will not support these. Trump's action on banning venezuela crypto is a good one. I hope people will see that they're losing their money over things that don't come through.

i am still doubted about these actions though, but i am also doubted if is it really a good choice on legalizing bitcoin and as you have said that they want to penetrate the crypto world, or should we say the government wants their hands on cryptocurrency. i really think you have the point, but still what is the point of banning bitcoin, since if it is considered illegal, a lot of us would be at stake right?

That's merely possible to the Asian countries also, and imposing a 13% tax on personal income transactions on everybody who had this kinds of crypto business can be a good start of government and crypto to collide. Not just with Russia, but also for all developed countries who planned for the adaption of crypto currency specially the traders who've been earning such amounts of crypto's. But this must be reviewed thoroughly by the County leaders, and the possible results is heading up for a good future of bitcoin and other currencies as well. With this future improvements of the current system of digital currency, hopefully we now benefit the goodness of it and not just that it will create a great demand of digital currency btc to increase its value rapidly.

Very interesting.


Bolded: this portion seems to operate under the flawed assumption that crypto currencies are "anonymous" or operate "off grid". Everything on the internet is logged and it might be said that all transactions are traceable if they need to be.


Bolded: very interesting perspective. Maybe redundant. Russia began creating its own alternative to the SWIFT system, seeking to become more independent after they were banned from it under sanctions. I think some nations could have sought ways to escape US surveillance after the Snowden leaks and similar events. Seeking independence from the dollar and euro could also be a high priority for some as concern over the EU/USA deficit mounts.


Another very interesting view. This might be compared to video game consoles where companies like nintendo chose cartridges over CDs/DVDs due to them making additional profits charging developers a licensing fee for using nintendo's cartridge/disc technology. AFAIK banks derive additional profits from the clearing process and so eliminating that abstraction from the equation could come at a loss of $/control for them.

 :)        will great article !! It just told about the government considering to adopt a cryptocurrencies and where the countries are invaded in this I think that is one of two sided games to sure also .the sides to be a loss it .will be the best for a government to adopt and promote cryprocurrencies since now or tomorrow they all go to adopt it I just considered it about popularity .that is just for benefits are the same as all and also the government is required to regulate the digital encryption of money to protect the interest of investor and to teach a digital encryption currency to the correct way of development.

The collusion is because of misunderstanding. The government completely misunderstood the working of bitcoin only looking for ways to control it. But bitcoin being decentralized and P2P is not easy to be controlled.

There is no doubt that the actions of the government will affect the way in which its citizens use cryptocurrencies. One of the main reasons why bitcoin has been created is in many ways a philosophical response to how governments control their national currency rules.

Although cryptocurrency has the potential to make money, its core is more of a philosophical realization of monetary freedom. It reminds people that human beings have the ability to govern themselves, and that a free market will promote innovation. This has convinced the liberal people that they are fresh and refreshing, and that they have awakened those who believe that almost all aspects of life are inseparable from the government.

that's why many countries start to prohibit crypto-currency and at the same time take the criminal responsibility away. I do not think that this situation will positively affect the users of crypto currency.

It may be inappropriate if you call governments are not understanding crypto currency correctly. Moreover I mean to say governments are not at all ready to try understanding what is crypto currency and what are the advantages a country's economic will get. Probably they will take some more time before start studying about crypto currency and its advantages.

I believe if governments start adopting crypto currencies then that will be the beginning of new era of better economic system worldwide. Already Japan is doing it and we are getting news on better economic rate in Japan. Maybe this will be the trigger for other countries to start adopting crypto currencies.

Bitcoin must be a versatile system and one day or other government to start realizing the potential of adopting bitcoin for each and every aspects of running a government. Honestly we cannot expect any time-frame within that government will come to adopt crypto currencies because there are a lot of infrastructures still needs to be built within crypto environments so that government adoption may occur earlier than we can expect.

Crypto is critical for a true global-scale economy. As much as countries may want to avoid this, it's an important trend that can't be ignored.

Better tech always wins against bureaucracy, it just takes time :(

On the government having its own cryptocurrency. I don't think that is a good idea as they are like creating another currency outside of their Fiat currency which means their would be an internal competition between the two currency they have. It would like saying to their own citizens that their own money is not enough.

But on the government allowing cryptocurrencies in their country, I would only see a good effect in terms of economical growth. But that growth will only come when proper regulation is applied, because without it a lot of people earning cryptocurrencies would have the tendency to evade taxes or falsify their income return.

We have seen more and more governments intend to join or may join the Cryptocurrency boom, and if the campaign continues, it will certainly change the existing international monetary system, and they are willing to make this attempt for small countries with economic instability, as Venezuela launched a virtual currency such as Petro. Next, those big powers will join forces with banks to try to make breakthroughs in the new field of block chain.

Blockchain must be a very big invention of human history and it will definitely attract more governments in coming days. We have already have here a long discussion about bitcoin will be replacing gold and when it will be happening there will be no wonder for bitcoin to be representing as a new international momentary system. Because I do believe bitcoin has all the capabilities to serve as international momentary system for the need of digital era demands.

Definitely we can expect drastic changes in world economic when government and crypto shake hands. Because, we already experience lack of support from fiats for digital age demands still governments not thinking about adopting new system probably bitcoin kind of new systems would be the answer for them.

For me this has both negative effects and positive. Cryptocurrency is widely accepted because of it's low cost transactions, anonymity and decentralization with the government putting their hands over crypto a significant changes will be implementedon those above mentioned.

As a currency or an investment category, the biggest risk to bitcoin's future success may be regulatory risk. For example, if China decides to ban its citizens from holding bitcoin, the price of the digital currency will collapse. China is currently the largest market for bitcoin transactions, with more than 50 per cent of bitcoin transactions taking place in China. Therefore, any adverse regulatory changes will have a direct impact on the world's bitcoin investment.


The same is true for major bitcoin start-ups like the United States and Britain, where prices collapse and are hard to recover if any big economy bans bitcoin.

I don't know if the manipulation of government is good for the future of cryptocurrency. In some point, they are correct because crypto can be a purpose for tax evasion but in order for them to crack tax evasion, government will control the crypto as well as the blockchain technology. If they make a regulation that covers about 40% of population in the world, cryptocurrency may decline. We are always been part of centralization because government holds us.

It's just going to be one step closer to a "cashless" society, but not a decentralised one.

As the article says, it's just going to make the government's actions have a more direct impact on the economy if they do use blockchain technology in the future. To be honest, it won't even be competition for the current crypto market because it's just completely different. One is decentralised, the other is centralised. It's just fiat money in blockchain form, it's still controllable by governments.

It's not a good thing, but it's not a bad thing. Governments aren't promoting existing cryptos but rather trying to get people to use their version of cryptocurrency, it's not going to push price of BTC up at all.

The governments are just getting frustrated because they haven't found a way to tax bitcoin and bitcoin earnings which is why they are so against bitcoin, they see so much money in one place but they have no idea how to get out of it./

One thing I am sure they cannot achieve is to restrict people globally from experiencing this level of freedom which is what the idea of decentralization has brought. They know that already anyway and from few things that could be deducted now, it is more like, generally, their hands are tied. It has been an interesting journey I must say, most especially for some of us in countries where we have been totally enslaved monetary wise. Whatever comes out of all this collusion, can only lead to regulation to some extent and the adoption of blockchain technology itself.

It is out of their hands. Bitcoin and crypto will just continue to flourish even if they don’t want to. Some have even chosen to ignore it or impose a total ban simply because they do not understand something which is unstable and out of their control. As we can see, some countries are now making regulations and this may continue for the upcoming years. Soon, many more other countries will choose to regulate as well.

That is not going to push the adoption of decentralized cryptocurrencies however people will get used to use cryptocurrencies even if they are using the cryptocurrencies created by governments this means that eventually when those cryptocurrencies fail, and they will fail, people will adopt more easily decentralized cryptocurrencies.

That's pretty much a guarantee. I think it's safe to say that right now all eyes of the countries that haven't forced through the necessary regulations, are looking at how Japan is doing to have an impression of what positive or negative effects somewhat open minded regulations have. That might also explain why it takes time for the rest to follow. Regulations come in various levels, where the main level is the one allowing financial institutions to enter this market, and I think that everyone wants to see this happen sooner than later. It might take a few more years, but eventually it will definitely become reality. In general terms, crypto is an entirely new asset class that is emerging, and nothing can stop it, but no one want to miss out on it either....

Looking into the banning and against system Bitcoin is still running and has survived a lot which is witnessing that we should not fear and should not consider if any government is against so Bitcoin is dieing and we should think of the legalization of Bitcoin as we know that Bitcoin is legal but if any government is considering it illegal and banning it then we should make a clear proposal for its legalization and to let them know of the Blockchain technology that results in no illegal transactions.

I really would not say it is misunderstanding but rather a way to deliberately just not want to understand as long as it is an uncontrolled space. There has always been this idea of central authority stating different policies and trying to control every monetary situation in every country, so the idea of having decentralization in place cannot even fly for them.

Nevertheless, blockchain technology will somehow be adopted by a lot as we can see so many countries already trying to embrace the idea of building their own currency on the blockchain.

Well, how long are they going to keep prohibiting without giving up eventually? It would have been easy if this has not spread globally already but the truth is that they must not have expected the rapid growth or spread within a short period of time, thanks for the global level of technology, otherwise, if this were to just be operational in few countries so far, the idea would have been frustrated.
Now, they have no choice than to just embrace and move on with the way things are except to find ways to regulate the current cryptocurrencies and see how they can also integrate the blockchain technology.

i think it will be difficult in my country if we make a clear proposal, but although not yet legalized still grateful because only on the prohibited transactions, i think this is not a problem for me, but it would be great if it is legalized

Yes. In a way, the fact that cryptocurrency brings a level of freedom and as you said, with human beings governing themselves, make the whole idea even more encouraging and interesting. Now, it is more like the shackles have finally been broken and all those who have been ensnared by the government as a result of inflation, mortgages and loans etc can now have a life where they can decide to control how things work for them.

Well, protecting the interest of investors can only be done by trying to regulate the already decentralized environment which balls down to some control on the activities. However, with the way things are going, countries are already beginning to see the positive effect that lies generally with blockchain technology and even regulating the present space. It is one thing they cannot overlook anyway and it is expected.