Innovations are something every government wants, but many take a very cautious approach. The lack of research in untested waters can result in more harm than good.
When it comes to cryptocurrencies Russia has taken a more cautious approach. While there have been talks of a Russian cryptocurrency, the government has stated that such an outcome is highly unlikely since cryptocurrencies transcend national borders by default.
The restrictions which many countries put on crypto are by no means a stop sign. This more reserved approach could prove more beneficial in the long run.
The research and investment into blockchain technology combined with fair limitations can create a safe and prosperous economic environment. Cryptocurrencies are reshaping the world of finance and there are countless opportunities for governments and investors alike.
Sanctions can by bypassed with blockchain technology
The uses of blockchain technology are countless and Russia is already exploring viable options. One of the uses that would greatly benefit Russia, especially with the heavy sanctions chipping away at the country’s economy, is the ability of cryptocurrencies and to surpass many limitations in the global financial trade.
The rise of cryptocurrencies in the modern world is forcing all governments to rethink their financial structure. A decade ago no one would think even for a second that if the Western countries applied sanctions to Russia and Iran, the Eastern countries could find ways to bypass them using digital currency.
For example, Bitcoin records allow money to move through the entire world and without the thumb of a central authority. Sanctions, usually enforced through banking disclosure and regulatory rules cannot take effect.
As many people have already figured out, this is a huge problem for central banks. The idea for records resistant to hacking and tampering combined with the inability for endless money printing is a central bank’s worst nightmare.
Russia’s central bank was in favor of removing the access of Russian citizens to cryptocurrency websites. Putin has talked many times about the potential criminal uses of blockchain technology.
Modern financial crime is not taken lightly by Russia. Without a doubt, blockchain technology can be very attractive to both criminals and government, despite the two being often heavily connected.
Only time will tell if Russia’s more conservative approach will provide greater economic development when compared countries like Switzerland and Estonia, who take a incredibly liberal approach towards blockchain technology and cryptocurrencies in general.
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