Russia calls for celebration of Bitcoin legalization

A few weeks ago, Russian authorities declared the use of Bitcoin legal from a legal point of view. Russia, with a population of 146 million, is an important market for Bitcoin and other digital currencies.

Cointelegraph spoke to Jake Smith of Bitcoin.com to get an update on the latest developments.

Bitcoin gets approval

Cointelegraph: Russian authorities have just legalized the use of Bitcoin. What is your opinion on this?

Jake Smith: Over the years, we've heard countless rumors of this or that country first banning Bitcoin, then clarifying that they were only regulating Bitcoin, then replying that they were legalizing Bitcoin, and so on. So when I hear about any country taking some kind of policy stance on Bitcoin, it's hard for me to get too excited or too worried. However, if Russia does decide to give Bitcoin an official green light, then I think this is fantastic news.

CT: When authorities say using and trading Bitcoin can be considered money laundering and terrorist financing, what do you think it means?

JS: I think it means that the authorities either don’t understand Bitcoin or they have an underlying agenda that they are pushing. They don’t understand Bitcoin and are calling it a money laundering or terrorist financing tool, ignoring that fiat currencies (currencies that specific authorities are responsible for) are still the number one tool for money laundering, terrorist financing, and black markets.

Bitcoin can have those uses only because it meets all the conditions for being a good currency. What the regulators really mean is that they are concerned that Bitcoin is not a currency that they can control and manipulate. They may have an agenda because they don't want the citizens of their country to use a currency that they can't control.

Impact on Bitcoin’s global adoption

CT: Does this reflect the level of acceptance of electronic money by governments around the world?

JS: Yes, every time a country (especially a large country like Russia) clarifies their legal stance on Bitcoin and grants permission, I see it as a vote in favor of global recognition and adoption of Bitcoin.

CT: Doesn’t the announcement of legalization of Bitcoin and other cryptocurrencies bother you?

JS: I think it's a little bit troubling. Mainly I find it ironic because Bitcoin and other cryptocurrencies will continue to work whether regulators agree or not. I think it provides a valuable insight into the minds of regulators who think they can control something they can't really influence.

CT: Is Russia important to the market? Is this event something to celebrate?

JS: Any country giving Bitcoin the green light is cause for celebration, but Russia has a population of 143 million, almost half that of the United States. As a country with stricter capital controls, this is a testament to the usefulness of Bitcoin to the Russian people. So yes, I think it is cause for celebration.