Bolivia Bans Bitcoins!

[ebliever]

From the article:

“It is illegal to use any kind of currency that is not issued and controlled by a government or an authorized entity.”

I know there is some controversy here over whether it can be fairly said that Bolivia has banned bitcoin. In my defense:

1. The quote from the article above sure makes it sound that way.
2. The article goes on to say "The decision to fully ban bitcoin puts Bolivia in unique standing in the international community..."
3. The title was just too rhythmic to resist. It just rolls off the tonque. 

I do agree that edicts like this one will have little effect on the gray/black market use of BTC and will probably just wind up an embarassment to the government.

[ArticMine]

From the article:

“It is illegal to use any kind of currency that is not issued and controlled by a government or an authorized entity.”

I know there is some controversy here over whether it can be fairly said that Bolivia has banned bitcoin. In my defense:

1. The quote from the article above sure makes it sound that way.
2. The article goes on to say "The decision to fully ban bitcoin puts Bolivia in unique standing in the international community..."
3. The title was just too rhythmic to resist. It just rolls off the tonque. 

I do agree that edicts like this one will have little effect on the gray/black market use of BTC and will probably just wind up an embarassment to the government.

The article is wrong. They translate "regular" in Spanish as "to control" rather than the correct translation "to regulate".

The intent here was to ban Bitcoin; however the resolution was very badly worded. The wanted to exempt fiat currencies so they said "issued or regulated by a state, country or economic zone" in order to not ban fiat currencies issued by "independent" central banks. The trouble with this wording is that it also exempts what the want to ban in the first place namely Bitcoin since many countries are regulating Bitcoin. This is why I posted the FinCEN regulations example from the United States. 

I am not one who will brand an entire country as inept dumb idiots; however after reading this resolution I can see why others have, at least when it comes to those who drafted this resolution.

[Velkro]

Noone care about Bolivia, after many countries will adopt Bitcoin it will have more pressure to adopt it also. But after all this, strange countries are all over the world, for example north korea, cuba etc. they will never adopt Bitcoin, and noone care either 

[franky1]

From the article:

“It is illegal to use any kind of currency that is not issued and controlled by a government or an authorized entity.”

subject to its regulatory jurisdiction, all entities of intermediation
financial and financial services authorized by the Superintendency of Banks and
Financial currently Authority Financial System Supervision ASFI

in short.. if your a regulated bank in the jurisdiction of bolivia banks cant hold bitcoin .. people are not regulated!!

[keithers]

I wish we could see some data showing how much btc id used in a particular country before a ban, and then after a ban. That would be interesting to see

[Elwar]

I wish we could see some data showing how much btc id used in a particular country before a ban, and then after a ban. That would be interesting to see

The data would be empty because there are no countries that have banned Bitcoin.

[cyberpinoy]

Well my first thoughts were, what exactly do they think they are doing, if you think about it, it says they can not use the crypto currencies, Ok so what is to stop the people from mining them, exchanging them into any currency that is regulated by a government or authority and then using those funds. Nothing like making  a law that is useless right. Not all peopole trade the currencies, some people just mine them and exchange them for local currency, there are many portals of use for these coins, it is clear the central bank did not use any research when theyb made that law.

Besides that please tell me who wants to buy anything with their bitcoins that is made in Boliva or resides in Boliva? Buying property in Boliva was not on my wish list how about you guys? Or wait what about the new manufactured vehicles Boliva is producing, Oh wait they dont produce vehicles. So what exactly do the Bolivians produce that the world needs or even wants?

[NewLiberty]

I wish we could see some data showing how much btc id used in a particular country before a ban, and then after a ban. That would be interesting to see

The data would be empty because there are no countries that have banned Bitcoin.

Quoted for truth.

This.

And...

[Stery]

There are no countries that have banned Bitcoin

China did

[Malin Keshar]

As far I can see, USA and other countries classifies BTC as an asset for monetary purposes only, they don't say bitcoin IS an asset and there are no other regulations out of the tax and financial aspects;

As long as I can see, Bolivia adopted a position similar to China and Russia, that is, no one can use BTC to buy things, but sell and buy BTC is not forbidden. Think the smae would apply to buy things using gold, salt, stock assets or anything similar, things that are not banned.


Anyway, all laws can be changed, or have no effect. I think cocaine and drug traffic is prohibited in Bolivia too, and they are one of the biggest world's drug producers.

There are no countries that have banned Bitcoin

China did

They baned the use of BTC as currency and also put pressure against exchanges and bitcoin-related business, but no real ban, this was just FUD to grab cheap coins

I wish we could see some data showing how much btc id used in a particular country before a ban, and then after a ban. That would be interesting to see

The data would be empty because there are no countries that have banned Bitcoin.

Quoted for truth.

This.

And...

You put anual PIB vs total market CAP in same table, they are not comparable. Would be more far use capital cap growing by year, but still misleading

[Stery]

Thats really odd

[0nlin3r]

Hello,

I live in Bolivia and can confirm our government is very ignorant, I don't even know how they heard about Bitcoin, they only know how to steal money and spend our money in non useful things.

I don't care of their ban to Bitcoin and will continue using it. As in the document says: "National use of digital currencies" I won't use it nationally, because as web developer/programmer, Bitcoin is a very useful "Tool" for me.

The thing is when I withdraw my Bitcoins, I will have to lie because every bank has KYC policy and they ask even for small transaction the source of funds and what are you going to do with the funds.

Anyone can suggest a smart way to deal with banks with this stupid policy?


http://cdn.acidcow.com/pics/20101115/animals_showing_19.jpg This is for you Mr President. Evo Morales Llayma.. or was it Ayma.

[Nerazzura]

http://www.coindesk.com/bolivias-central-bank-bans-bitcoin-digital-currencies/

From the article:

“It is illegal to use any kind of currency that is not issued and controlled by a government or an authorized entity.”

I suppose we should be shaking in our boots that an economic powerhouse like Bolivia is banning bitcoin... or something. But I see a few problems with their plan. For one, a number of other nations have declared that bitcoin is _not_ currency. But it is considered _property_.

So Bolivia's central bank might have to defend the notion that bitcoin is currency against an international climate that has not reached such a concensus and may be rejecting it. And if bitcoin is just property, how can you ban trading it? Seems to me you'd have a difficult time banning bitcoin trades without banning all property-property transactions (such as trading a hammer to your neighbor in exchange for baseball tickets).

Thoughts on how this pans out? Personally I suspect it just shows the weakness of their fiat currency and they are trying to shore it up.

On a side note, I wouldn't be surprised if Argentina announces similar moves. In fact I wouldn't be surprised if bitcoin had another run to the moon based on news today that Argentina expects to default on their next debt payment. A few weeks ago there was news that bitcoin traders were beginning to establish boots-on-the-ground in Argentina, that could enable them to provide desperate Argentines with an alternative to their oft-collapsing currency.

Hmm, let's try to compare with some other countries I have ever read in the online medium, but I forgot to take down the site. correction if I am wrong.
Many countries responded with permissive bitcoin transaction, which is marked with green legal status. In the United States, bitcoin be circulated as electronic transactions.

As in Singapore, the central bank decided not to intervene on the transaction with bitcoin, but would impose a tax because bitcoin is considered a commodity.

In the neighboring country of Malaysia, the central bank allows the transaction with bitcoin. However, people are suggested to be careful in transacting and investing with the virtual currency.

[NewLiberty]

As far I can see, USA and other countries classifies BTC as an asset for monetary purposes only, they don't say bitcoin IS an asset and there are no other regulations out of the tax and financial aspects;

Diverse US agencies treat it differently.  There isn't a "US policy" in toto.

As long as I can see, Bolivia adopted a position similar to China and Russia, that is, no one can use BTC to buy things, but sell and buy BTC is not forbidden. Think the same would apply to buy things using gold, salt, stock assets or anything similar, things that are not banned.

Pretty much just the BCB bans it.  So banks won't accept it.
For what its worth, I can deposit Rubles into my US Bank account and get dollar credit, can't do that with bitcoin, so its more or less the same in the USA too.  Except in Bolivia, you may be more likely to lose a banking relationship if you try.

You put anual PIB vs total market CAP in same table, they are not comparable. Would be more far use capital cap growing by year, but still misleading

I just took and provided the picture.  Its a comparison of M1.
The data is here:
http://www.coinometrics.com/bitcoin/bmix

Click full data.
Zeroblock also puts it on their app.  I don't claim originality here, just caught the joke when Bolivia's central Bank made their funny 044/2014 "ban".

[RepublicSpace]

To me, the most interesting part of this is their justification for it: Specifically, to protect their own national currency.

[Elwar]

I don't care of their ban to Bitcoin and will continue using it.

Fortunately for you the Bolivian government did not ban Bitcoin.

A bank's legal department made a recommendation that the banks only use government currencies for their bank accounts.

[RepublicSpace]

Not because they think it will facilitate otherwise illicit activity. Not because they think it poses a security risk, or puts citizens' own finances at risk. Their openly stated justification for banning bitcoin is "if we don't ban it, people will use it instead of our money."
Or, in other words, "we can't compete."

[ArticMine]

Hello,

I live in Bolivia and can confirm our government is very ignorant, I don't even know how they heard about Bitcoin, they only know how to steal money and spend our money in non useful things.

I don't care of their ban to Bitcoin and will continue using it. As in the document says: "National use of digital currencies" I won't use it nationally, because as web developer/programmer, Bitcoin is a very useful "Tool" for me.

The thing is when I withdraw my Bitcoins, I will have to lie because every bank has KYC policy and they ask even for small transaction the source of funds and what are you going to do with the funds.

Anyone can suggest a smart way to deal with banks with this stupid policy?


This is for you Mr President. Evo Morales Llayma.. or was it Ayma.

Can you get independent legal advice in Bolivia on the actual resolution? My read of it is that they tried to ban Bitcoin but failed because the ban is contingent on no other country passing regulations regarding Bitcoin.

[NewLiberty]

Not because they think it will facilitate otherwise illicit activity. Not because they think it poses a security risk, or puts citizens' own finances at risk. Their openly stated justification for banning bitcoin is "if we don't ban it, people will use it instead of our money."
Or, in other words, "we can't compete."

They may not have heard the saying that starts "If you can't beat them...."?
I don't think it ends with "ban them".

[percocet]

I suspect there will be more "backlash" coming against Bitcoin, but fortunately, it will make no difference as we are beyond the point of no return!