government and crypto collide

[mostkey]

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.

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

[Dimid]

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.

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.

[timerland]

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

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.

[keycellko]

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

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.

[Jonsnowstark]

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

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.

[Funeral Wreaths]

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

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?

[marcuslong]

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.

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.

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.

[Hydrogen]

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. In Sweden, where use of cash is vanishing, the central bank is investigating issuing its own digital currency, the E-krona, out of concern that widespread use of other virtual currencies controlled by private actors could harm competitiveness.

Very interesting.

3. Aren’t cryptocurrencies by definition non-governmental?
Until now, yes. Bitcoin and its many competitors and imitators have developed independently from central authority -- and intentionally so. But the blockchain technology that undergirds all cryptocurrencies doesn’t preclude centralization. In theory, a government could have greater control of a virtual currency than a paper one because it would be able to keep tabs on all transactions recorded on the blockchain ledger.

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.

6. What would this mean for the international monetary system?
The Western-dominated global financial system relies on a slew of internationally agreed-upon rules, norms and institutions that let countries trade and invest in each other. The U.S. exercises a degree of control over the system because the dollar and the U.S. banking system dominate. Should enough countries set up their own digital currencies, they would operate outside the existing framework, undermining the influence of traditional global central banks like the Federal Reserve and the European Central Bank.

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.

7. What would this mean for banks?
In the case of national cryptocurrencies, the blockchain technology would supplant the clearing process now handled by commercial banks, undermining an important revenue stream. Banks would likely retain their role issuing mortgages and other forms of credit.

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.

[ronics]

         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.

[BitNaija]

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.

[huanzhong644306]

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.

[atjiat]

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.

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.

[wuvdoll]

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.

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.

[Safebit.io]

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

[Harlot]

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.

[hualangktsld841]

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.

[darewaller]

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.

[northcoin2018]

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.

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.

[yurenchuang7125]

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.

[CASTIEL05]

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 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.