bitcoin ban logoDr. Victor Dostov has served as the President of the Russian Electronic Money Association since 2009 and is considered one of the leading experts and managers in the Russian retail payment sector. He was one of the founders of the Paycash Group as well as a managing partner. Dr. Dostov has an extensive record and experience in the digital payments industry in Russia. Recently, he spoke with Allen Scott from CoinTelegraph in an interview on Bitcoin in Russia where the good Doctor voiced his thoughts on the proposed legislation banning cryptocurrency in Russia.

Also read: Russia Bitcoin Ban Plans to Fine Digital Currency Users

Not All Russians Want to Ban Bitcoin

Russia’s Electronic Money Association (EMA) represents the largest payment businesses in Russia. One of his duties as President is to study and increase public awareness of payment technologies. Dr. Dostov doesn’t see Bitcoin as competing against the EMA, but rather sees them as complimentary goods. While we have heard the Central Bank’s stance on cryptocurrency, the authorities in Russia have yet to acknowledge the benefits of the blockchain technology. This could be in part because the technology is often promoted as an anti-state by the Bitcoin community – a concern I’ve voiced before. In the interview with CoinTelegraph, Dr. Victor Dostov explained:

[I]t is sometimes very difficult to promote the technology when some in the Bitcoin community position it as overtly anti-state.

Still, Dr. Dostov is confident that the technology is here to stay and that we will see further integration and projects. However, he remains skeptical about its integration with national monetary systems, and not just in Russia. He names two reason for this.

  1.  It simply might be cheaper and easier to stick with the old ways.
  2.  Most customers don’t want or like the benefits from the anonymity. They want to be able to reverse charges in the case of theft. He names this as the reason projects such as Digicash were unsuccessful in the past.

When asked about the current fines proposed by Russian authorities, Dr. Dostov again points to the lack of understanding from the authorities on how the technology works. He does not believe that the fine and ban is a good way to handle the risks posed by cryptocurrency

We are concerned about the proposed legislation. I do not think that fines and a ban is a way to handle the risks that cryptocurrencies pose, just as any other technology.

What do you think about Russia’s Bitcoin Ban? Comment below!

Images from Shutterstock.