- It cannot be mined, but rather created only by banking authorities, meaning each and every coin can and will be tracked.
- A ‘capital gains rate’ tax for those who cannot provide a paper trail of coin ownership incentivises payment systems to only accept goods that can be tracked.
- All other cryptocurrencies have been banned.
Brief Summary of Russian Maneuvers:
President Putin then begins to meet with Ethereum co-creator and Russian native Vitalik Buterin, to which several blockchain projects have now sprung.
On Aug. 28th it was announced that state-owned development bank, Vnesheconombank (VEB), in combination with a number of government agencies are opening up a research center to study the intersection of blockchain and quantum computing technologies.
The Ethereum Foundation (a Swiss organization) then signed a deal with VEB to assist with the development of a research center with the goal of making it an incubator for ethereum-based technologies.
Banks, tech giants, and the Russian government align together …
Ethereum will act as the operating system, eventually leading to Internet 3.0, while WAVES will back the Moscow Exchange’s move to trade cryptocurrencies and their derivatives – ultimately becoming a gateway for all currency exchanges, thus allowing business to still flow in and out of the country through the government operated and controlled blockchain platform.
Now to finish off Bitcoin.
Yet Another Bitcoin Hater
No one uses Bitcoin to finance terrorism.
Bitcoin tracks and records all transactions – all in a 100% transparent, public ledger, available to anyone with a computer in its entirety.
… and for a central bank to call something a pyramid scheme is absolutely ridiculous.
All paper currencies are pyramid schemes.
Related Article: Dollar is NOT Fiat. PEOPLE are Collateral
When government and banking authorities say things like this, what they really mean is they do not know how to control it and they are losing their power over money.
Bitcoin is a currency that does not need intermediaries to function – aka banks and governments. The technology it represents (blockchain) brings with it a social revolution that they cannot stop.
Unfortunately capital will always flow to where it is treated best and these are some intelligent moves made by Putin.
The CryptoRuble provides the means by which to convert, transaction-cost-free, back into the national ‘fiat’ currency to pay bills, taxes and the like – it’s exactly what crypto-junkies have been waiting for.
If Russia continues to develop blockchain technology and embrace it in a relatively tax-free way, it won’t matter that it is ‘regulating’ decentralized digital currencies – the money will flow accordingly.
At the end of the day you are the cryptocurrency investor.
You are the consumer.
How you spend your money represents what you support.
Related Article: Bitcoin Is Unstoppable. Let the Revolution Begin