government and crypto collide

[rowel21]

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

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[Jating]

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

1. Who is pushing the idea?

Venezuela’s president, Nicolas Maduro, is pitching a proposed virtual currency he calls the Petro, each unit of which would be backed by one barrel of oil. According to Maduro, the country received $5 billion in purchase offers in the first week of presale in February.

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.

2. Which other countries are considering cryptocurrencies?

Russia’s central bank plans to talk to countries including Brazil, China, India and the five former Soviet republics about creating a supra-cryptocurrency that could cover countries with 40 percent of the world’s population. People’s Bank of China Deputy Governor Fan Yifei wrote an article broaching the possibility of a digital currency it would issue with Chinese commercial institutions.

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.


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.

[olia10]

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.

[Tapyaks72]

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.

[alexsandria]

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

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.

[jakagintiri]

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

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.

[krishnapramod]

Starting a digital currency might seem attractive to any government that doesn’t like how it’s being treated by the global financial system. That includes governments facing international sanctions. The U.S. attempts to enforce sanctions by blocking banks and companies that do business with the target country from the American financial system. Violators are traced via their transactions in the international banking system. But if a government had its own digital currency, its transactions might not be detectable to U.S. authorities. Bitcoin can provide an avenue around sanctions as well, but a government would struggle to get hold of enough of them to be meaningful.

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.

[serjent05]

Starting a digital currency might seem attractive to any government that doesn’t like how it’s being treated by the global financial system. That includes governments facing international sanctions. The U.S. attempts to enforce sanctions by blocking banks and companies that do business with the target country from the American financial system. Violators are traced via their transactions in the international banking system. But if a government had its own digital currency, its transactions might not be detectable to U.S. authorities. Bitcoin can provide an avenue around sanctions as well, but a government would struggle to get hold of enough of them to be meaningful.

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.

[Elmughni]

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.

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

[Coffee135]

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.

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.

[krishnapramod]

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.

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.

[Wonder_woman]

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. 

[Kakmakr]

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.  

[tanxingwo1215]

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!

[BillCoin]

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.

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.

[jseverson]

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.

[YourHumbleCorrespondent]

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

[jona]

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

[MoonJeina]

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.

[Mpamaegbu]

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.

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.