Bolivia Bans Bitcoins!

[ebliever]

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.

[ebliever]

Here's a cross-link to discussion of the Argentine crisis, since I brought it up:
https://bitcointalk.org/index.php?topic=656019.0

[BitCoinDream]

I was just about to post it too...  This is sad their immigrant workers wont be able to take the advantage of bitcoin, but it is not going to impact Bitcoin as such.

[justusranvier]

South Americans, in general, are much more acutely aware of the precarious nature of government-issued money than North Americans and Europeans.

If a central bank is actively denouncing Bitcoin, then many of them will automatically start taking it more seriously.

[franky1]

can we for once ignore coindesks interpretation of the news which thy sourced from panampost.

can we ignore panamposts interpretation of the news..

and can someone translate the actual banks source info.. so that we can see the actual wording the bank has used.

coindesk has exaggerated far too often with russia, china, etc before. so can we read source material before spreading rumours

http://www.scribd.com/doc/230438003/Resolucion-del-Banco-Central-de-Bolivia

using google translate.. what i take from it is that bolivian central bank BCB are telling financial institutions that in article 124 they can move money digitally through mobile apps as long as they meet tight security restrictions and ensure data stays private. and that these institutions can only deal with FIAT..

it then says that BCB has

currency has been detected in some countries the use of virtual currencies like Bitcoin, Namecoin,
Tonal Bitcoin, IxCoin, Devcoin, Freicoin, 10coin, Liquidcoin, Peercoin, Quark, Primecoin,
Feathercoin and others that do not belong to ningian state, country or economic area,
emission and therefore use is not regulated and may cause a loss to their holders

which to me is the standard "investment risk" warning EVERY country has published, and that the BCB RECOMMENDS the ban of financial instittions USING bitcoin.

again like all countries banks have contracts to supply only FIAT. banks tdo not store or hand out cars, tins of beans.. only FIAT.

though im still reading it and will edit this line later. i do not see anywhere that stops INDIVIDUALS from purchasing bitcoins privately. and i do not see PRIVATE businesses cannot handle bitcoins.

[allthingsluxury]

Bad news for them.

[acoindr]

Here's a cross-link to discussion of the Argentine crisis, since I brought it up:
https://bitcointalk.org/index.php?topic=656019.0

Thanks! Not sure how I missed this.

Justice Ruth Bader Ginsburg worried that this could expose even its embassies and military ships to seizure if the government doesn't pay.

  Now we're getting somewhere!

[ArticMine]

Here is the original Spanish:

POR TANTO,
EL DIRECTORIO DEL BANCO CENTRAL DE BOLIVIA
RESUELVE:

Articulo 1.- A partir de la fecha queda prohibido el uso de monedas no emitidas o reguladas por estados, 'Daises o zonas economicas y de ordenes de pago
electronicas en monedas y denominaciones monetarias no autorizadas por el BCB en el ambito del sistema de pagos nacional.

Articulo 2.- La Presidencia y la Gerencia General, quedan encargadas de la ejecucion y cumplimiento de la presente Resolucion.

La Paz, 6 de mayo de 2014

From http://es.panampost.com/belen-marty/2014/06/19/bolivia-el-primer-pais-americano-en-prohibir-bitcoin/

Google Translation:

THEREFORE,
DIRECTORY OF CENTRAL BANK OF BOLIVIA
RESOLVED:

Article 1 -. Starting date using coins not issued or prohibited regulated by states' economic and Daises or payment orders zones electronic currency and monetary denominations unauthorized by the BCB in scope of the national payment system.

Article 2 -. The Presidency and the General Manager, are responsible for the execution and implementation of this Resolution.

La Paz, May 6, 2014

My Translation:

THEREFORE,
THE DIRECTORATE OF THE CENTRAL BANK OF BOLIVIA
RESOLVES:

Article 1 -. Starting with the date below, the use of money not issued or regulated by states, countries or economic zones, or the use of electronic payment orders, electronic currency and monetary denominations unauthorized by the BCB in scope of the national payment system, is prohibited.

Article 2 -. The Presidency and the General Administration, are responsible for the execution and implementation of this Resolution.

La Paz, May 6, 2014

There is little doubt in my mind that this is an attempt to ban Bticoin and other crypto-currencies; however the ban is contingent on no other country in the world regulating Bitcoin. The key word here is "reguladas" translated as "regulated".

[C64_4EVA]

Wow, that makes them the first country to ban Bitcoin entirely.

I knew it would be one of those Banana Republic South American countries. Their monetary systems are rapidly falling apart and they are desperate to control capital. If I was a betting man, I would be betting on them failing miserably.

[Elwar]

Bank bans bitcoin!

Alert the media!

And what is Bolivia's stance on Bitcoin?

[beetcoin]

man central and south america are not places i would like to be.. so much turmoil in that region, possibly 2nd behind the middle east. it could be similar/equivalent to africa.

[Elwar]

Wow, that makes them the first country to ban Bitcoin entirely.

I knew it would be one of those Banana Republic South American countries. Their monetary systems are rapidly falling apart and they are desperate to control capital. If I was a betting man, I would be betting on them failing miserably.

No country has banned Bitcoin (title should be changed).


Have banks gained such a foothold as to make people believe they have the power of guns, kidnapping and cages like governments?

[TheButterZone]

This just in: exhaling CO2 (greenhouse gas) is now "banned". Extinction-level genocide to begin in 3...2...

 

[ArticMine]

Wow, that makes them the first country to ban Bitcoin entirely.

I knew it would be one of those Banana Republic South American countries. Their monetary systems are rapidly falling apart and they are desperate to control capital. If I was a betting man, I would be betting on them failing miserably.

More correctly tries to ban Bitcoin. http://www.fincen.gov/news_room/nr/pdf/20140130.pdf Sounds like regulations to me.

Edit: IANAL The reality here is that all it takes is one government somewhere in the world issuing regulations related to Bitcoin to kill the ban. Any Bolivian lawyers care to comment?

[franky1]

still missing the proof that the banks are banning PEOPLE from holding trading bitcoin. as all im reading is that BANKS wont hold / trade bitcoins.

EG
banks dont trade baked beans.. people do..

[jjc326]

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.

Like when Cyrus began taking peoples' money, BTC took off to the moon.  Could happen again when the next crap goes down.

[Elwar]

Visa and Mastercard have also banned sending bitcoins over their networks.

McDonalds has banned all Whopper sales!

[Meuh6879]

Wow, that makes them the first country to ban Bitcoin entirely.

other country don't ban ... but bank blacklist client that it transfer to exchange.
what the difference ?

[phelix]

The media has been eagerly waiting for the next Bitcoin story. This spells rally.

[Blinken]

From the same Bolivian legislators who have also wisely made it illegal to have sex with a woman and her daughter at the same time.

Ah, Bolivia, the home of the llama, the dumbest of all pack animals. The country still hoping to build a tunnel to the Pacific Ocean. The country where driving a car is tantamount to suicide. Unfortunately, that has not resulted in the extermination of the Bolivians, because there are very few (functional) cars there, the reason being that whenever a car has a mechanical problem it becomes permanently inoperable due to the absence of anyone intelligent enough to be able to fix a car.

To their credit, they were eventually able to kill Butch Cassidy and the Sundance Kid, although it did take over 1,000 of them to do it.

Ah, Bolivia, the only country in which McDonalds is unable to operate, because the concept of a restaurant is too complex for their bird-like brains. Where airplanes are illegal, because, you know, it's impossible to fly. That's logical right: it's impossible to fly therefore airplanes should be illegal. Very logical. Based on that logical insight they were invited to submit a team to the world math olympiad, but that proved impossible because they were unable to find any Bolivians who knew what math was. So, instead they had a tortilla eating olympiad in La Paz.

La Paz, interestingly enough has a few buildings which are over 1 story in height, presumably built by foreigners. The Bolivian architects specialize in constructing soccer fields, because nothing is more important than soccer, and they are safe. Safe in the sense that noone has been killed by a collapsing soccer field, the soccer fields, being, well, flat. Some goalies have been injured, however, by falling goal crossbars, so that is their current focus: improving crossbar joining technology to avoid goalie head injuries. This is very important because the soccer field is the most important part of every Bolivian city. It's the law there must at least one soccer field every 5 blocks.

The Bolivians like soccer because it is simple to understand: kick ball. At one point some Americans tried to teach them baseball, but that didn't work, since it involves using the hands and legs at the same time and other complexities like requiring the use of tools. The Americans tried tying a glove on a llama to demonstrate that animals, and by extension people, could indeed use tools, but the indios remained convinced tool use in sports was impossible so they made baseball and any other sport utilizing tools illegal, because they are impossible.

Bolivia used to be a much larger country. In fact, at one time all almost all of South America was "Bolivia", but the Bolivians kept starting wars and losing them. Every time they lost, they would lose more territory. Other times they just gave away territory. For example, around 1900 it was discovered that a Bolivian region called Acre had a lot of rubber trees in it, so Brazil told the president of Bolivia, who, like all Bolivians was an idiot, that they would like to buy Acre. The president said, "How much?" The Brazilians knowing how stupid the Bolivians are, said, "How about 1 horse?" The Bolivian president said, "Hah, what do you think I am? An idiot? I have lots of horses." Then the Brazilians said, "O, but this horse is perfectly white." The Bolivian president not having any white horses readily agreed to that deal.

Here's another story about the same guy, Presidente Mariano Melgarejo. Melgarejo means "stupid" in Indian language. In 1870, Germany invaded France. Melgarejo was infuriated because he had heard how beautiful and elegant Paris was. So, he ordered his top general to send the army to France and defend Paris. The general complained that the army would have to swim across the Atlantic Ocean. Melgarejo angrily replied "Don't be stupid! We will go around the ocean and take a short cut through the brush!"

Anyway, its a good thing they have banned bitcoins because you know crypto currency is impossible. It involves math.