Russia Bans Bitcoin

Don’t try to do Winter Olympic business in the currency of
tomorrow, today!, Bitcoin.

Why not? Russia’s Prosecutor General announced today, reports
Fox News:

“Bitcoin is a money substitute and cannot be used by citizens
and legal entities,” the agency’s press release reads.

The Russian law enforcement agency cited an existing 2002 law
signed by Russian President Vladimir Putin that reads, “the
official currency of the Russian Federation is the ruble.
Introduction of other monetary units and money substitutes is
prohibited.”

Has this Russian maneuver destroyed market desire for the
digital currency? Not quite:

The price of bitcoin on Coinbase.com, the largest
American site for buying and selling bitcoins, fell from about $780
before the Russian announcement to $700, before rising back to $750
by mid-day Friday. The price may also have been affected
by financial
problems at the Japanese bitcoin exchange MtGox.

I wrote last year about how governments can and will try to
hobble, but are
unlikely to be able to destroy, Bitcoin.