Russian Financial Monitoring Agency Taps Bitcoin As Downfall of Local Economy

The story of Bitcoin in Russia has taken yet another turn. Things have been evolving at an accelerated pace as of late, albeit every positive decision is followed by a dubious one shortly after. RosFinMonitoring, the Russian financial monitoring agency, is fearful of how Bitcoin and cryptocurrency will make the local economy collapse in the coming years.

Russia‘s Economy May Collapse Regardless of Bitcoin

It has to be said, ay country’s economy could collapse at any given moment. That may or may not have anything to do with cryptocurrency or Bitcoin, though. A lot of countries are struggling to stay afloat, and their lingering indecision on a course of action is only making things worse. Russian officials seem to be looking for a scapegoat before the collapse happens, which is rather worrisome.

The evidence presented by RosFinMonitoring regarding these claims seems dubious, at best. While it is true cryptocurrency challenge the traditional financial system in many ways, Bitcoin and others will not replace it anytime soon. In fact, until a few weeks ago, using Bitcoin in Russia could have been punishable by jail time.

On the other hand, there is a surging interest in cryptocurrency as far as Russia is concerned. LocalBitcoins trading volumes are showing significant volume spikes every week, indicating more and more people are obtaining cryptocurrency in the country. But for now, its impact on the ‘mainstream lifestyle” is minimal to nonexistent.

RosFinMonitoring Deputy Director Mr. Livadny states:

“One may look at it as a challenge to national sovereignty, when there’s an injection of currency equivalents into the economy, equivalents which volume isn’t regulated and which value isn’t backed by anything.”

This seems to be a rehash of the warnings banks have issued ever since the inception of Bitcoin in 2009. Traditional currencies, such as the Ruble, are not backed by anything either, yet they can be controlled by the government. Cryptocurrency , on the other hand, cannot. But that does not warrant issuing a warning of how Bitcoin will make the Russian economy collapse. If that would ever happen, it will be due to the banks and government themselves.

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