Crypto Pay Could ‘Destroy the Financial System’

[kolbalish]

Russian Lawmaker: Crypto Pay Could ‘Destroy the Financial System’

The chief architect of Russia’s crypto regulations has defended a new Russian law that outlaws payment in bitcoin (BTC) and altcoins – claiming that a failure to do so could have spelled the end for the ruble-powered Russian financial system.
The comments were made by the head of the parliamentary committee on financial markets Anatoly Aksakov, in an interview with the Russian-language edition of state-controlled Russia Today.

Aksakov stated that Moscow had no plans to “legalize digital money as a unit of accountancy,” adding,

[Cryptoassets] can be used as a method of payment for goods elsewhere in the world, but not in Russia. The recognition of digital coins as an official means of payment on a par with the ruble would mean the destruction of the financial system, which ensures the stable operation of the entire economy. Our plans do not yet include the legalization of [cryptoassets] as a payment alternative to the ruble.”

However, Aksakov suggested that Moscow has high hopes for its growing blockchain technology sector. He suggested that the technology could help boost international trade – and even help Russia bypass the burden of international sanctions.

He said,

“Business can now attract investments from foreign partners, as well as sell their goods on blockchain networks. At the same time, the blockchain technology, due to its technical features, makes it possible to bypass sanctions-related restrictions, which helps contribute to the development of trade.”

As previously reported by Cryptonews.com, that although the new law does outlaw crypto payments, it is unlikely to impact the sector much, and amounts to little more than a “glossary of crypto concepts” – with a more comprehensive set of regulations likely to follow in 2021 at the earliest.

Reference: https://cryptonews.com/news/russian-lawmaker-crypto-pay-could-destroy-the-financial-syst-7431.htm

[dothebeats]

Was actually not surprised that the Russians are back at it again with their anti-crypto stance. They wanted to be as Ruble-centric as possible and do not want foreign or other currencies to be used by their people for better tracking and for stimulating the growth of their own currency. Honestly, crypto-payments amount to only a small percentage of their economy, and I do not see it as a threat on its own against the Ruble. In fact, this might even stimulate the playing ground on Russia and attract services and companies to start their own outlet in the Russian side of things.

[sana54210]

I do not understand, if just allowing crypto to be used in some trading cripples all of your economy, I think your economy should cripple anyway, you are very weak and you can't handle even a slight bit of competition.

Crypto is far superior to any fiat in the world but it is not superior enough to actually destroy the financial system as a whole, it is just an alternative and that is it. Until you can put your crypto into bank, have a crypto card, pay everything with crypto and just remove fiat totally out of your life without ever using it again and fiat cash becomes a novelty, I think it can't destroy financial system. And for that to happen we need at least few decades of crypto surge constantly and I feel like that is not going to be stopped this way neither.

[traderethereum]

I think not just crypto that can be used for illegal things, and money can do so.
We already know that money has been used for illegal things such as money laundering or buying something illegal.
If every government can think that crypto and fiat are like a knife which has two sides, and we have a choice of how we will use for, I think they will understand and will try to prevent that thing.
It will difficult work to know for what reason crypto is used because we can only see the transaction in the blockchain.
Maybe they can still use their fiat, while they can legalize crypto to be used as a commodity at the market and make payments.
Every government needs to dig deeper into this to know the advantages and disadvantages of crypto.

[Febo]

Crypto Pay Could ‘Destroy the Financial System’

Not just could, but it definitely will. Cryptocurrencies that act like cash will be widely used and that will make all bank transactions obsolete. Banks will do only their primary job, lending and borrowing cryptocurrencies.

[minairia3]

Crypto Pay Could ‘Destroy the Financial System’

Not just could, but it definitely will. Cryptocurrencies that act like cash will be widely used and that will make all bank transactions obsolete. Banks will do only their primary job, lending and borrowing cryptocurrencies.

Not so sure about that. Why even needed the term destroy? Is it much better for the coined word adopt right? Financial system is not rigged but with the help of cryptocurrencies digital payment could enhanced and widen the ability of financial to be used easily. But the problem is banks dont like the idea cause their clients might focus more on using cryptocurrency instead of their bank system.

[Lucius]

The chief architect of Russia’s crypto regulations has defended a new Russian law that outlaws payment in bitcoin (BTC) and altcoins – claiming that a failure to do so could have spelled the end for the ruble-powered Russian financial system.

If Bitcoin has been legalized as a payment method in Germany in Japan for years and has not destroyed their financial system, then what is this Aksakov talking about? The structure of government in dictatorial-communist countries such as Russia or China is such that it does not want to allow the slightest chance of creating any alternative that would allow people to become financially independent.

When we consider the situation in those countries, should we be surprised that millions are looking for a way out of such countries in legal and illegal ways? Money is one of the very important control factors of any society, it represents the power needed especially for the repressive systems of the police, secret services and the army that suppress any idea of changing the system.

[kolbalish]

The chief architect of Russia’s crypto regulations has defended a new Russian law that outlaws payment in bitcoin (BTC) and altcoins – claiming that a failure to do so could have spelled the end for the ruble-powered Russian financial system.

If Bitcoin has been legalized as a payment method in Germany in Japan for years and has not destroyed their financial system, then what is this Aksakov talking about? The structure of government in dictatorial-communist countries such as Russia or China is such that it does not want to allow the slightest chance of creating any alternative that would allow people to become financially independent.

When we consider the situation in those countries, should we be surprised that millions are looking for a way out of such countries in legal and illegal ways? Money is one of the very important control factors of any society, it represents the power needed especially for the repressive systems of the police, secret services and the army that suppress any idea of changing the system.

It can be a good point that many countries already legalized the BTC officially and there are some big economy based country also. There economy is running successfully and BTC doesn't hamper their existing economy. So, many countries whom has confused about their economy can follow those countries.

[The Sceptical Chymist]

Honestly, crypto-payments amount to only a small percentage of their economy, and I do not see it as a threat on its own against the Ruble.

Seriously, and that's true for pretty much every other fiat currency out there.  The simple fact is that people are not turning to bitcoin or any other cryptocurrency in droves and abandoning the fiat system--so this is a bogus argument put forth by the Russian authorities. 

Hopefully other countries won't follow suit and enact laws like this.  It doesn't look like that's going to happen, but you never know.

Crypto Pay Could ‘Destroy the Financial System’

Not just could, but it definitely will. Cryptocurrencies that act like cash will be widely used and that will make all bank transactions obsolete.

It's been ten years since bitcoin was created, and the banking system is still doing its thing.  I don't think that system is in danger of being destroyed by a form of money that most people haven't adopted and that most merchants don't accept as payment.

[hugeblack]

Much of the news concerns Russia, even after the new amendments were approved in the law, which allows the use of cryptocurrencies to buy some products and is not an alternative to the ruble or recognized currency.

Countries (especially Russia, the United States, and China) will not legalize digital currencies because it means weakening the paper money of these countries. Many countries place many restrictions on purchasing gold and force citizens to deposit it in banks.
The same applies to cryptos. They will not obtain legitimacy, but rather taxes are put on them to benefit the national economy.

[Febo]

Crypto Pay Could ‘Destroy the Financial System’

Not just could, but it definitely will. Cryptocurrencies that act like cash will be widely used and that will make all bank transactions obsolete. Banks will do only their primary job, lending and borrowing cryptocurrencies.

Not so sure about that. Why even needed the term destroy? Is it much better for the coined word adopt right? Financial system is not rigged but with the help of cryptocurrencies digital payment could enhanced and widen the ability of financial to be used easily. But the problem is banks dont like the idea cause their clients might focus more on using cryptocurrency instead of their bank system.

There is nothing to adopt. Transactions happens on the blockchain you dont need any other bank system to send wealth anymore. They will be obsolete and destroyed.

[Kez1817]

In my own opinion,Crypto pay could not destroy the financial system because it is just an alternative or additional payment method to be use online if ever the government allow it. Crypto can't replace fiat currency because for sure government doesn't want a decentralized currency that they can't control. But if the government look the crypto currency as the additional method in financial system which is possible,then it will be good and many people will continue to use it more than investment.

[wxa7115]

Russian Lawmaker: Crypto Pay Could ‘Destroy the Financial System’

The chief architect of Russia’s crypto regulations has defended a new Russian law that outlaws payment in bitcoin (BTC) and altcoins – claiming that a failure to do so could have spelled the end for the ruble-powered Russian financial system.
The comments were made by the head of the parliamentary committee on financial markets Anatoly Aksakov, in an interview with the Russian-language edition of state-controlled Russia Today.

Aksakov stated that Moscow had no plans to “legalize digital money as a unit of accountancy,” adding,

[Cryptoassets] can be used as a method of payment for goods elsewhere in the world, but not in Russia. The recognition of digital coins as an official means of payment on a par with the ruble would mean the destruction of the financial system, which ensures the stable operation of the entire economy. Our plans do not yet include the legalization of [cryptoassets] as a payment alternative to the ruble.”

However, Aksakov suggested that Moscow has high hopes for its growing blockchain technology sector. He suggested that the technology could help boost international trade – and even help Russia bypass the burden of international sanctions.

He said,

“Business can now attract investments from foreign partners, as well as sell their goods on blockchain networks. At the same time, the blockchain technology, due to its technical features, makes it possible to bypass sanctions-related restrictions, which helps contribute to the development of trade.”

As previously reported by Cryptonews.com, that although the new law does outlaw crypto payments, it is unlikely to impact the sector much, and amounts to little more than a “glossary of crypto concepts” – with a more comprehensive set of regulations likely to follow in 2021 at the earliest.

Reference: https://cryptonews.com/news/russian-lawmaker-crypto-pay-could-destroy-the-financial-syst-7431.htm

This is nothing more but the old “bitcoin bad blockchain good” they are going to use the blockchain to avoid the sanctions against their country and to get even more control of their citizens but if their citizens try to get a little bit more freedom and a great investment opportunity then that is bad for the economy.

Let this be a lesson, governments will always change their rules without notice and they will try to trap you with their lies, never trust them especially when it comes to cryptocurrencies, the only problem is that as long as people keep being sheep and believe everything they say the adoption of bitcoin will still be low, but when the economic system collapses people will finally understand that giving control to a centralized authority of the whole economy is not a good idea.

[Naida_BR]

Crypto payments can destroy the financial system, indeed.
However, in order to be able to make cryptocurrency payments financial system should allow this. Currently, they are not opt to do so. Having said that, if this is going to happen we need to pass a lot of time and let the financial system 'absorb' those payments.

[mu_enrico]

Obviously, cryptocurrency can destroy the financial system in term of control and surveillance. That's why government pushed MLD5/AML regulations. The battle will start soon I think (I read about many services including BitMex now mandatory to do KYC), It's time to grab the popcorn.

[CarnagexD]

I do not understand, if just allowing crypto to be used in some trading cripples all of your economy, I think your economy should cripple anyway, you are very weak and you can't handle even a slight bit of competition.

That little competition could turn to a bigger one, once people sees the worthiness of crypto they might just jump all in on that which most of the government does not want to happen. It is understandable how every country has its own government that has a different stance on things, it shows the diversity of how every one of us think. Crypto is small, still, but the potential that lies within is huge.

Crypto is far superior to any fiat in the world but it is not superior enough to actually destroy the financial system as a whole, it is just an alternative and that is it. Until you can put your crypto into bank, have a crypto card, pay everything with crypto and just remove fiat totally out of your life without ever using it again and fiat cash becomes a novelty, I think it can't destroy financial system. And for that to happen we need at least few decades of crypto surge constantly and I feel like that is not going to be stopped this way neither.

The problem with crypto is that it separates the citizen to its government in terms of finance monitoring, government would have a hard time tracking illegal movements when we use cryptocurrencies, on the other hand most of us just wanted to have a convenient in transaction which the government clearly sees, but still the threat of using cryptocurrencies is not a joke to for them to just set aside. It cannot destroy the financial system but it can weakens the financial system, hence crypto is always on talks with the possibilities.

[abhiseshakana]

Crypto payments can destroy the financial system, indeed.
However, in order to be able to make cryptocurrency payments financial system should allow this. Currently, they are not opt to do so. Having said that, if this is going to happen we need to pass a lot of time and let the financial system 'absorb' those payments.

If cryptocurrency comes into contact with the real economy, it can disrupt national financial stability in the event of a bubble burst. The movement of money from fiat to cryptocurrency is a form of capital flight for a country and will cause a decline in the value of the national currency.

But if the state is reluctant to adopt financial technology and ignores cryptocurrency it will be detrimental in the long term because algorithmic-based financial technology is a picture of the economy in the industrial revolution, so the sooner a country prepares a legal basis for cryptocurrency, the more accelerating economic development and growth.

[bits4books]

Lol well, what did you expect? What will the current Russian government decide to allow cryptocurrencies? I beg you this is not even funny but just wildly naive.
Just remember that any successful IT project in Russia or any successful private business suddenly begins to interest the authorities (because successful and private = dangerous) and all ends up with the assets of companies passing into the right hands. Remember Chichvarkin, or Durov. Read what is happening with Yandex now and what has become with mail.ru.
Yes, the same Slavic Wargaming in their homeland in Belarus had better things-but they also transported almost everything that can be to Cyprus. Do not expect something like this from Russia and then you will not get disappointed.

[cryptoaddictchie]

The problem with crypto is that it separates the citizen to its government in terms of finance monitoring, government would have a hard time tracking illegal movements when we use cryptocurrencies, on the other hand most of us just wanted to have a convenient in transaction which the government clearly sees, but still the threat of using cryptocurrencies is not a joke to for them to just set aside.

Specifically the citizens that do crimes. They are the one who are actually worried about this. Well if ever, just in case crypto has been embraced by most. Financial system would widen, but Im kinda thinking how Government could remedy the issue on tax with this. Many financial instituion believe on crypto efficiency and probably will be adopted by many. Why not both just adjust and set aside the money profiting right? This is what Im thinking, countries are too afraid that their economic growth which does not relies on crypto would suffer.

[giammangiato]

Not right at the 100%. They can coexist and pay with crypto or pay with fiat could be a personal choice. At the moment i don't like to spend my btc, probably only after a pump but in a bear season I will never spend my crypto! Could be as stupid as the guy that spend his btc for 2 pizzas