Bitcoin was first introduced in 2009 when Satoshi Nakamoto’s invention became an open-source software. It provides a peer-to-peer transaction system that is managed using a public distributed ledger without the need for a third party. One does not need to wait for the payment to be approved and completed by the mediators such as banks. It is considered a decentralized and virtual currency since there is not central authority or governing body that manages it. Bitcoin’s largest strength is also it’s weakness as countries like Russia are looking to ban the use of Bitcoin in Russia.
Also Read: Bitstamp Blocks Access from Russian IPs
Where credit card payments require the payment of fees by the vendor, Bitcoins require the purchaser to pay the fees. This has led to some criticism by world governments, for they are of the viewpoint that Bitcoins fail to protect customers by refund rights or charge-backs. Furthermore, the perceived amount of anonymity Bitcoin provides scares some governments which believe cryptocurrency to be a threat to their state. It is for reasons like these that the usage of Bitcoins has not made it to all markets as well as all countries. State of Bitcoin in Russia
For more than a year now, the state of Bitcoin in Russia has been complicated to say the least. Russia’s economic law making body, The Ministry of Finance of the Russian Federation, has been quite vocal in its opposition to the cryptocurrency. Since early 2014 the use of Bitcoins has been largely perceived as illegal and punishable by Russian law.
Several websites related to Bitcoin were blocked in early 2015 by Russia’s media regulator, with a Russian state-owned media outlet reporting that the usage of bitcoin is illegal under Russian federal law. The Bank of Russia also issued a statement in […]
