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Topic: Bolivia Bans Bitcoins! - page 6. (Read 6330 times)

legendary
Activity: 1708
Merit: 1035
June 19, 2014, 03:55:52 PM
#1
http://www.coindesk.com/bolivias-central-bank-bans-bitcoin-digital-currencies/

From the article:

“It is illegal to use any kind of currency that is not issued and controlled by a government or an authorized entity.”

I suppose we should be shaking in our boots that an economic powerhouse like Bolivia is banning bitcoin... or something. But I see a few problems with their plan. For one, a number of other nations have declared that bitcoin is _not_ currency. But it is considered _property_.

So Bolivia's central bank might have to defend the notion that bitcoin is currency against an international climate that has not reached such a concensus and may be rejecting it. And if bitcoin is just property, how can you ban trading it? Seems to me you'd have a difficult time banning bitcoin trades without banning all property-property transactions (such as trading a hammer to your neighbor in exchange for baseball tickets).

Thoughts on how this pans out? Personally I suspect it just shows the weakness of their fiat currency and they are trying to shore it up.

On a side note, I wouldn't be surprised if Argentina announces similar moves. In fact I wouldn't be surprised if bitcoin had another run to the moon based on news today that Argentina expects to default on their next debt payment. A few weeks ago there was news that bitcoin traders were beginning to establish boots-on-the-ground in Argentina, that could enable them to provide desperate Argentines with an alternative to their oft-collapsing currency.
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