Topic: As fiat currencies face potential collapse, will cryptocurrencies be outlawed? (Read 176 times)

As long as the government can't track the transaction, everything will be fine. Because it has been involved in the world of import and export, there are many gaps that can be used to conduct transactions using bitcoin as long as there is a trust factor between exporters and importers. The government is too slow for chasing bitcoin transactions.

Until whenever the government on behalf of the country's sovereignty will never legalize bitcoin as a substitute for the official currency of the country let alone use bitcoin as the only means of payment in a country. In the industrial revolution and the developed world, the most likely choice for the government is the stable centralized coin.

Russia has clear laws governing a legal currency within Russia. In accordance with the Constitution of the Russian Federation Article 75 point 1 states that the monetary unit in Russia is ruble and the introduction and issue of other currencies are not permitted in Russia. Likewise, the law contained in the institutions of the Central Bank of Russia in Chapter VI concerning cash management article 27 is written that the means of payment in Russia is the ruble, the issue of other payment instruments banned in the Russian Federation. Federal law concerning the Central Bank of Russia refers to the Constitution of the Russian Federation.

For Russia with a paternalistic system that refers to the role of the state which is more prominent than the civil element, the ban on bitcoin is definitely something to happen. Russia has a relatively high "power distance" index. Putin has his own democratic model that is adjusted to his understanding that prosperity is more important than freedom and human rights, so democracy and freedom of expression are not the top priority. According to Putin, the authoritarian regime guarantees economic development rather than the instability of a democratic government. So it is not surprising if Russia finally decides to make bitcoin illegal.

I think that governments on the contrary want to use cryptocurrencies. But they will try to use it to their advantage.

In Russia if you go and buy Bitcoins with cash , you will be taken to jail . It's illegal , one should understand that government is trying to track down everything , from Cash flow to cryptocurrencies buying and selling.
They for sure knows your funds and I do think it is really hard for them to understand to give people a little privacy.

If Fiat looses its value , I do think Cryptocurrencies would emerge as the saviour , the long fought war against the government would be already won .

Cryptocurrencies are amazing , they do have a lot of applications as for today , I do think people should learn more about it because if it keeps going like this there won't be much time left for the Fiat .

Isn't that if fiat starts to collapse, some parties will probably precisely look at cryptocurrencies and want to make it acceptable in their country? Why should be banned because of the collapsed fiat? Do they think that crypto makes worse of their fiat? if so, it is about the competition and And this does not have to wait for the collapse but now can also prohibit crypto.

I quoted from the source:

Is this true? If this law is approved and adopted, it will have a global impact. How come? Many cryptocurrency players are from this country. Many crypto companies are also from Russia. Will this affect the crypto world globally?
Maybe there are currently pros and cons related to the holding of this new policy. especially with the fines and sanctions submitted. However, if it is determined, will they still be able to play behind?

Actually we should feel grateful because lately, more and more countries are exploring and interested in cryptocurrency. Therefore, it is unfortunate if such a law is passed. Moreover, Russia is a big country.

But personally I will not believe if this will happen, this country sometimes makes a high news and then it changes again.

Source:
https://www.rt.com/russia/489336-russia-law-prisons-cryptocurrencies/

this proposal means nothing. the russian government always waffles on crypto legislation. one year they say using bitcoin is illegal. a few years later they are moving to legalize and regulate it. now we have another bill trying to ban it.

i'll believe it when i see the bill passed into law.

Concerning your title, there is no need to make it dramatic. You've probably read some false opinions crypto twitter has adopted about hyperinflation without even looking at the meaning of the term, or without caring to compare the dollar with the currencies that have hyperinflated in the past. There is no potential collapse for the dollar. Its price is depreciating at the same rate as before, nothing can change unless some major catastrophe hits it. The national currencies that might face problems are the ones of weaker economies. I don't see the rubble facing problems either to be fair, with or without sanctions.

By the way thanks for both links. They do contain a lot of useful information, even though I don't usually trust RT, still I have to admit that this was a useful report. I don't have much to say about gold. A government can ban the possession of a tangible asset, but they won't produce the same effectiveness if they try to ban Bitcoin. I don't hold gold this high as others do, and don't find this asset better than holding cash for limited periods that contain high uncertainty. With cash it is easier to seize opportunities during an economic downturn.

It's quite possible that they will do such a thing. There are lots of reasons as to why the government will not allow cryptocurrency to take over fiat, but I don't hope for that to happen. There are already countries where cryptocurrency is outlawed and people are not allowed to make use of it, even with that I still see people who are making use of Bitcoin in that country.

I don't really know how they do it, Bitcoin is legal in my country and I don't have any problem making use of it. For those asking what it does for the government if they should ban Bitcoin, you should do your research to understand. It's best that we don't reach where that will have to happen.

Cryptocurrency to come this far against the bubble stories heard maybe in the past, it looks to me that it is not going to be outlawed, it has come to stay. The covid-19 problem is one example as it was used against fiat that was said to be agent to effect people. More reason is that the world has started changing to digital and a means for payment is adequate. Cryptocurrency isn't the only digital means for payment, so how will it be outlawed.

as far as i can remember the news regarding Russia was similar negative thing but in the end the reality has always been different. basically i think among the FUDs in media Russia has the third place with China being first then India.
in any case fiat is not going to collapse without the country collapsing first and when that country collapses there is no lawmaker left to outlaw anything. so the question here answers itself.

^ Everyone know for a fact that in some countries cryptocurrency is still illegal for it may threaten the government or their central bank to lose the absolute control in everyone's asset. If more people would turn into cryptocurrency and be able to do transactions using it then fiat currencies might be in real trouble since nowadays cryptocurrency is continuously getting a wider range of usage like with amazon, that may kill fiat currencies. I am afraid that if they see cryptocurrency as a threat to fiat money and they will outlaw it then every transaction will be considered as an underground arrangement. Nevertheless, with the number of people that will adopt cryptocurrencies for their daily transaction government, may not oppose its citizen and may just find another way probably they will just adapt it and let their fiat currency die instead of being against their people.

I don't think the "potential collapse”  you are referring is highly possible. The world is not yet ready to embrace the digital currencies, it takes one world government for that. Just on this concern the possibility is still fatal enough to conclude that digital money couldn't abolish the fiat.

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Can you please send me 1200$ of that toilet paper you dislike that much? I prefer 100$ bills.
I will even trade you a full x8 pack of 3 layers peach scent toilet paper for the amount.

But speaking of the Russian bill, if it ever gets adopted and indeed a full ban is put in place it's going to be an interesting experiment, as a lot of people said that cryptos can be banned and governments can't stop cryptos. It would be interesting to see how well this end and how many would keep usings using cryptos once 3-4  crypto enthusiasts start falling from the 8th floor of some 4 level tall buildings in Moscow. That is the Russian authorities will not change their way of telling people when its time to shut up.

There has theory in economics; Business Cycle. It shows the fluctuation of economic trend. There are 5 stages of Business cycle; expansion, peak, recession or contraction, depression and recovery. Cycle of business does not go in straight line. It takes different shapes in different situation. In every shape, economic condition of the world becomes different. If we see a portion of the cycle, it looks like U shaped, not V shaped. Cryptocurrency is not out of the economic fact. It is also affected by business cycle.

Russia, China, North Korea - these 3 countries in the world are rules under strict dictatorship. So don't be surprised if you see such legal proposals coming out from their countries. They certainly don't reflect the mentality of a progressive nation. Power is more important than development for these countries and they don't think twice to make their citizens suffer big time!  Cryptos can't be banned by just passing a law. We have seen many instances previously!

The fact that Russia will eventually adopt a bad law regarding decentralized cryptocurrency, I have no doubt. This becomes especially evident when the general economic and financial situation there has become very aggravated.
Under these conditions, the influence of stable coins will increase, moreover, stable coins of central banks of various states. If the global economic crisis follows and a decentralized cryptocurrency proves to be a reliable anti-inflationary tool, the demand for it will increase and then the general government is unlikely to decide to outlaw it.

So what makes it right to outlaw cryptocurrencies? Any country that does that could easily outlaw anything, and I won't be comfortable staying in such country. It honestly makes no sense to outlaw something as good and safe as real cryptocurrency/Blockchain. Besides, what stops people from using other decentralized technology for storing and exchange value? It won't be that difficult to create another decentralized non-blockchain tech (with native token, points or coin) for exchanging goods and services .
Sometimes I wonder why some are so obsessed with control. What are they afraid of?This is not how the World is meant to be.

It is really hard to predict because of some facts - official cryptocurrency from Chinese PBoC and most probable US dollar on blockchain in next year or 2.
It all depends on the rhetoric from mass media and politicians = which cryptocurrency is the better one - centralized or real decentralized.

We had seen to what length Donald Trump would go to protect the US economy, even going into a Trade War with China and printing Billions of Dollars like toilet paper to hand out for FREE to the US citizens. So, the question is... would he go to war against Crypto currencies, if it was used to devalue the US Dollar?

I think most countries will try to protect their local Fiat currencies in times like these, so the chance is high that they would put some restrictions on currencies that would endanger their local Fiat currencies. The US had in the past, outlawed private ownership of Gold... so they might do the same with Crypto currencies or they might only restrict the trade of all Crypto currencies. 

They already have a draft bill and breaking the law like owning a mining farm will cost fine from 500,000 rubles ($7,000). This news comes out just today, I don't know if this is the cause of this drop of price, is it?


Where else can investor go when they want the safest investment but their government de-monetise gold?  A hedge fund manager really can make the worse fud and get away with it.

I tend to agree, although I'm sure governments don't see it that way.  In any case, that's just a proposed law in Russia and not a reality (yet).

Goldbugs have been fearing that gold will be outlawed for many years, so that doesn't surprise me--but it's also not something I want to see happen in any country.

By the way, I don't agree with the part of the title of this thread "As fiat currencies face potential collapse" since I don't think the majority of them are in danger of collapsing or experiencing a hyperinflation situation, at least not in the near future.  Some of them that have been in danger (like Venezuela's) eventually get replaced by some other type of fiat. 

If it is outlawed, it is not something shocking anymore. As a matter of fact, cryptocurrencies are still outlawed in some countries until now. But I don't know how that would solve the problem of a collapsing fiat.

Making investing in gold illegal, just like outlawing cryptocurrencies, does not solve the problem. They shouldn't bother complicating matters at hand. They're just wasting time and effort.

It seems to be the direction the law in Russia is headed.
https://www.rt.com/russia/489336-russia-law-prisons-cryptocurrencies/

Others are suggesting some countries could make it illegal to invest in gold.
https://www.marketwatch.com/story/stashing-some-gold-heres-why-that-could-soon-be-illegal-according-to-one-notable-hedge-fund-bear-2020-05-20