While Bitcoin is becoming more widely accepted as a means of payment, governments and banks in more and more countries are warning about the risks of using the digital currency.
Russia now joins these countries, as the Central Bank issued a warning, describing the use of Bitcoins as particularly dangerous.
According to the bank, virtual currencies or “money substitutes” have been deemed illegal under the country’s federal law.
Bitcoin is an independent currency that is not regulated by any government and carries a high risk of depreciation, due to its volatile nature (it can rise or fall hundreds of dollars from one day to the next).
The bank warned that through the use of the currency, users may, knowingly or unknowingly, engage in illegal activities, such as money laundering or terrorist financing.
Considering that Bitcoin is often used in illegal activities, such as drug sales (Silk Road case) or money laundering (recent arrest of BitInstant CEO), it is not exactly surprising that Russia has a negative attitude towards the digital currency.
