Note from the Publisher: This news was reported in the press a few days back but the more we think about it, the more we have questions, and this article opens up a whole new thought process. Bitcoin (cryptocurrency) considered a “foreign currency”? Wow! Then how will governments treat cryptocurrency? Also, if bitcoin is considered a “foreign currency”, what sovereign nation and central bank has jurisdiction over it distribution? It all makes our little fintech-focused head spin!
“Depending on how soon all involved parties can come to an agreement, the law proposal will be submitted to the Duma by the end of 2016.
The status of Bitcoin in Russia has been up in the air for quite some time now. There only seems to be two courses of action: either Bitcoin would be banned, or it would be allowed. But perhaps there is a third option on the table, as authorities want to label Bitcoin as “foreign currency”.
Putting Bitcoin on the same level as foreign currency in Russia would have some interesting consequences. Using Bitcoin in the country will remain prohibited, but users can buy Bitcoin in Russia through exchange platforms. Additionally, they can use this purchased cryptocurrency to spend it in different countries around the world.”