Russia is pushing forward legislation that accepts quantum ai trading as a means of exchange. This move is seen as one of the series of events taking place around the world that may help the cryptocurrency market recover from its recent slowdown. As Bitcoin recovered recently after a similar development in another major economy, India, analysts have set a new target of $50,000 for the coin.
Prelude
This new announcement comes almost a month after the Bank of Russia proposed a complete bank on all forms of crypto-based operations. The bank cited the likely destabilizing effect of crypto on the nation’s finances. However, the bank recently entered into an agreement with the government on creating a future system for the circulation of crypto in the country.
Widespread Institutional Adoption
Wells Fargo, the financial services giant, recently made an announcement that there was still time for investors to get into Bitcoin. Analysts at the firm compared cryptocurrencies’ adoption to the Internet. If similar adoption rates continued, cryptos are expected to move into the next phase of adoption. According to the company, the next phase will involve hyper-adoption. These regulatory developments in the crypto ecosystem over the past few years are expected to be one of the biggest factors to drive adoption. The oversight and legal systems being implemented globally are seen to help solidify the image of crypto as investable assets.
The recent announcement by the central bank seems to be another development in this direction. This is seen as a key milestone in Bitcoin’s acceptance and potential growth in the near future.
The country’s central bank has decided to update its existing crypto laws. As part of these laws, the government will be recognizing cryptos as a medium of exchange. This development is guided by the country’s goal to classify cryptos as a standard currency similar to Ruble and not just a financial asset.
What Does the New Russian Cryptocurrency Law State?
The new law related to crypto classification will be drafted this month. It is focused on integrating the circulation of cryptos into the nation’s financial system. This will help create business opportunities for crypto-based platforms and services.
Some of the key points in the draft are as follows:
- The creation of rules for the circulation of cryptos and the creation of control measures
- Minimizing any potential threat to the financial system’s stability
- Reducing the use of cryptos for any form of illegal applications, because total ban on their operations or circulation is seen to be impossible
Once Bitcoin and altcoins become legal tender, licensed operators will be able to declare their income with the help of identity checks.
Related Developments in Institutional Adoption
Apple has also taken steps after the recent developments to join the crypto ecosystem. The tech giant has announced launching a new feature that will allow its users to make payments in cryptocurrencies. The new feature will work with a simple tap on iOS devices and will work with contactless debit and credit cards, and various digital wallets.
According to analysts, the correction in Bitcoin’s price is about to end. It is expected to resume its recovery and the process seems to have already started. Many analysts believe that the original cryptocurrency is all set to touch the figure of $50,000 in a short-term perspective.
Potential Caveats
There are certain checks and limitations on the volume of crypto transactions that can be carried out under the new law. According to reports, there is a cap of 600,000 rubles on the size of transactions that can be allowed. This amounts to $8,000. There are certain fines for crypto transactions exceeding this limit.
The Bank of Russia and the Finance Ministry are expected to either move amendment legislation make changes to the digital assets laws or draft a separate bill altogether. There are different reports about when the new law will come into force. Some claim that the legislation will come into effect during the second half of 2022, while others state that it will not be implemented until 2023.
Whenever the new Russian law comes into effect, this is seen as a groundbreaking development. It is certainly expected to help Bitcoin and the overall crypto market to recover.
