Russia Bans Bitcoin

Don't try to do Winter Olympic business in the currency of tomorrow, today!, Bitcoin.

Why not? Russia's Prosecutor General announced today, reports Fox News:

"Bitcoin is a money substitute and cannot be used by citizens and legal entities," the agency's press release reads.

The Russian law enforcement agency cited an existing 2002 law signed by Russian President Vladimir Putin that reads, "the official currency of the Russian Federation is the ruble. Introduction of other monetary units and money substitutes is prohibited."

Has this Russian maneuver destroyed market desire for the digital currency? Not quite:

The price of bitcoin on Coinbase.com, the largest American site for buying and selling bitcoins, fell from about $780 before the Russian announcement to $700, before rising back to $750 by mid-day Friday. The price may also have been affected by financial problems at the Japanese bitcoin exchange MtGox.

I wrote last year about how governments can and will try to hobble, but are unlikely to be able to destroy, Bitcoin.

Comments

[Fist of Etiquette]

BAN IT. (But, you know, in Cyrillic.)

[Malvolio]

(Did you know Reason won't accept a comment unless it is predominantly in Latin characters?)

??? ??

[Bee Tagger]

Don't try to do Winter Olympic business in the currency of tomorrow

The currency of tomorrow? I think there are plenty of Russian mobsters perfectly aware of just how worthless being paid tomorrow is.

[waffles]

I like Bitcoin.

[CE]

Yeah, nothing says financial stability like a strong currency such as the ruble.

[gR]

the official currency of the Russian Federation is the ruble. Introduction of other monetary units and money substitutes is prohibited.

Granted its been about 7 years, but the last few times I've been to St Petersburg, everywhere but hotels and nice restaurants wanted dollars.

[~Knarf Yenrab~]

Exhibit 1 for how fucked up the world's currencies are. Old-world fiat currencies are so unstable that the Bernanke-ed dollar has become a reasonable hedge.

[~Knarf Yenrab~]

Bitcoin is a money substitute

Any widely accepted "money substitute" is money. Though there remains technical debate about whether Bitcoin is merely currency or whether it's become actual money yet.

and cannot be used by citizens and legal entities

Of course it can. Just watch 'em.

[Corning]

Introduction of other monetary units and money substitutes is prohibited.

What?!?!

Well there goes the buying power of my Russian chickens.