Bolivian Central Bank Reportedly Bans Digital Currencies Like Bitcoin

NewLiberty

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Quote from: db on June 20, 2014, 04:45:31 PM

Quote from: zeetubes on June 20, 2014, 07:06:26 AM

Someone pointed out to me that "legal tender" means that debt can't be settled with it. Even gold and silver wouldn't necessarily be considered to be legal tender.

It only means debt can't be settled with it against the creditor's will. Unless there is a contract saying it can. Debts can be settled in anything the parties agree on.

Yes. Legal Tender laws usually say that you may discharge any debt in the jurisdiction with the money they print.
With this law anything a government with such a law does, or owes, can be dispelled with their paper, and you can do the same... with their paper.

You can also do it with better things. Those wise to the paper game will likely agree, others might be confused.

db

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Quote from: zeetubes on June 20, 2014, 07:06:26 AM

Someone pointed out to me that "legal tender" means that debt can't be settled with it. Even gold and silver wouldn't necessarily be considered to be legal tender.

It only means debt can't be settled with it against the creditor's will. Unless there is a contract saying it can. Debts can be settled in anything the parties agree on.

zeetubes

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Quote from: niothor on June 20, 2014, 12:58:09 AM

A translation of the central bank statement reads:

Quote

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

But , is bitcoin a currency? Wink

The Argentinian central bank released a similar statement that read, "digital currencies are not considered legal tender because they are not issued by the government/CB." Someone pointed out to me that "legal tender" means that debt can't be settled with it. Even gold and silver wouldn't necessarily be considered to be legal tender.

Also funny that the only things I know about Bolivia basically came from Butch Cassidy and the Sundance Kid and some recent James Bond movie.

Swordsoffreedom

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Quote from: barney_stinson on June 19, 2014, 10:55:22 PM

Quote

The reason? “To ensure the stability of the domestic purchasing power,” according to the board of the country’s central bank.

IMO, it is stupid reason. If Bitcoin will be using all over the world, the need to maintain national currency disappear

True I kind of don't see how Bitcoin would decrease the domestic purchasing power, more capital can freely move into the country increasing its purchasing power relative to goods and services.

Now if they said they had inflationary concerns that would still sound a bit strange considering their economy.

Second Source
http://panampost.com/belen-marty/2014/06/19/bolivia-not-revolutionary-enough-to-tolerate-bitcoin/

niothor

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in defi we trust

A translation of the central bank statement reads:

Quote

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

But , is bitcoin a currency? Wink

Fins think otherwise:

http://www.bloomberg.com/news/2014-01-19/bitcoin-becomes-commodity-in-finland-after-failing-currency-test.html

bryant.coleman

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Even the possession of Bitcoins are prohibited? That is a little bit extreme. Now the Bitcoin users in Bolivia will have to do their transactions via TOR, and have to be extra careful about doing transactions in Localbitcoins.

NewLiberty

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M1 Bolivia $7,320,000,000.00 vs
M1 Bitcoin $7,692,792,399.50
They are just sore losers.

ENEWIT

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Development of Bitcoin involves the transition to the use of digital currency, which will abolish the usual types of payments. Of course, this will happen in the long term, but it will be. You'll see!

Lethn

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This looks like more Thailand Central bank style FUD spreading to make the Bitcoin price drop again.

nwfella

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Well hello there!

The firmer they tighten their grasp the more satoshi's will slip through their fingers.

Mostly on the sly I imagine.

Levis

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Quote from: barney_stinson on June 19, 2014, 10:55:22 PM

Quote

The reason? “To ensure the stability of the domestic purchasing power,” according to the board of the country’s central bank.

IMO, it is stupid reason. If Bitcoin will be using all over the world, the need to maintain national currency disappear

Why do you think so? Today there are cash and cashless payment types in the world. But talking about that paper money and bank money will go into the past prematurely

barney_stinson

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Quote

The reason? “To ensure the stability of the domestic purchasing power,” according to the board of the country’s central bank.

IMO, it is stupid reason. If Bitcoin will be using all over the world, the need to maintain national currency disappear

p2pbucks

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Ban ban ... all dammit central banks are same Angry

But in a not far future these greedy vampires will rest in hell Roll Eyes

Swordsoffreedom

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Quote from: cr1776 on June 19, 2014, 06:13:21 PM

Quote from: knightcoin on June 19, 2014, 05:37:22 PM

...“To ensure the stability of the domestic purchasing power,” ...

Talk about a statement completely at odds with reality! A central bank promising stability is like the number two promising to be an odd number.

I agree thanks for pointing this out

Here's an unfortunate news item. It's being reported that El Banco Central de Bolivia — the Bolivian Central Bank — has banned any form of currency or coin not issued or regulated by the Bolivian government

From the date the use of coins not issued or regulated by states, countries or economic areas is prohibited, and electronic payment orders on coins and currency denominations not authorized by the Central Bank of Bolivia in the field of national payment system.”

Hmm ok pending new sources will say this looks bad Bolivia's central bank is corrupt.

cr1776

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Quote from: knightcoin on June 19, 2014, 05:37:22 PM

...“To ensure the stability of the domestic purchasing power,” ...

Talk about a statement completely at odds with reality! A central bank promising stability is like the number two promising to be an odd number.

odolvlobo

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Don't believe this article's interpretation. Reputable media outlets do not depend on Google Translate.

tntdgcr

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unless BTC can be used by the Narco Trade lol , I wouldn't imagine much desire to disrupt their already fragile economy

knightcoin

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http://newsbtc.com/2014/06/19/bolivian-central-bank-reportedly-bans-digital-currencies-like-bitcoin/

Article 1 of the resolution declares the following (rough translation):

“From the date the use of coins not issued or regulated by states, countries or economic areas is prohibited, and electronic payment orders on coins and currency denominations not authorized by the Central Bank of Bolivia in the field of national payment system.”

What they means is that any product must be denominated in Bolivian currency, which would certainly put a damper on the growth of bitcoin in the country — one of the poorest in Latin America.

The reason? “To ensure the stability of the domestic purchasing power,” according to the board of the country’s central bank.

It’s an all-around disappointment for Bolivians with interest in the digital currency, but we reckon the central bank’s decision won’t be stopping enthusiasts any time soon.

Topic: Bolivian Central Bank Reportedly Bans Digital Currencies Like Bitcoin (Read 1347 times)