171015 Russia Introduces the CryptoRuble

Vladimir Putin himself made the announcement that Russia would issue its own cryptocurrency — the CryptoRuble.  What’s more, he said there would be no mining of CryptoRubles, that CryptoRubles could be exchanged for rubles at any time and there would be a 13% tax if the owner could not explain where they came from.  An odd set of rules to be sure but there is no secret about what the intention is: strict government control.

Is this good for Bitcoin or bad? Obviously, there will not be a strong Bitcoin market in Russia.  There will be none at all.  But they will have their own brand of cryptocurrency.  It’s difficult to see how this turn of events could help Bitcoin.  In effect, this just proves the potential power Jamie Dimon’s latest statement regarding Bitcoin was speaking of, that governments will crush Bitcoin. People fight to obtain and hold power and wealth.  Bitcoin, for those who understand the power cryptocurrencies offers, threatens to redistribute wealth in some fundamental ways.  Governments have always reserved the right to oversee the currency of the land.  Vladimir Putin and Jamie Dimon know this.  Putin has taken the direct approach.  Dimon has to take a more nuanced approach to conserving power for himself and for his.