The Casa company, which is dedicated to developing Bitcoin security software, organized a panel discussion a few days ago. There, the real possibilities of countries banning cryptocurrencies such as Bitcoin (BTC), and the options available to citizens in a similar scenario are discussed.
In the discussion that Developed live Jameson Loeb, the company’s chief technology officer, participated in the Twitter space, along with Ron Stoner, the company’s chief security officer. Also in attendance were Canadian bitcoin, which has been identified on Twitter as NVK; and Dave Bradley, founder of Bitcoin Brains.
Can a Nation Really Ban Bitcoin? This was the initial question put to the committee. Jameson Loeb was the first to respond, explaining Different types of blocking (or blocking) Governments can implement it.
“When we talk about bans, there are some levels of blocking that can be announced in a country. Many of them do not have any application, while others have been more or less effective,” he notes.
Hence he speaks of prohibitions directed at the operation of exchanges or central service providers, which could limit their relationship with banks or also prevent their legal operation in a country.
This type of measure has been implemented in Turkey and Nigeria, for example. It’s a scale which has a certain degree of effectivenessLoop acknowledged, but it’s not stopping Bitcoin.
Speaking on this topic, nvk calls for an assessment of the behavior of financial markets when reporting a ban of this type. An idea that Bradley endorsed suggests that we do Far from being able to forcefully block Bitcoin fully.
Team participants remember that these kinds of extreme taboos are Those that promote black markets.
Rod Stoner supports this claim, pointing to the level of adoption of bitcoin and cryptocurrencies it has reached today. Some countries (such as El Salvador) adopt it as legal tender. Other governments legitimize it“To the extent we can say that it no longer matters if a country bans it because it is now a global tool.”
Mining restrictions don’t work either
“We can go further and talk about restrictions on bitcoin miners with the goal of limiting processing power or hash rate,”
In this case, miners are forbidden to operate equipment in the country, although this does not prevent the network from continuing to operate.
This is what happened in China last year, and we saw that the Bitcoin blockchain did not stop despite the massive exodus of miners. This shows that it is impossible for governments to shut down the network So “trying to stop bitcoin as a protocol is futile,” Jameson insists.
This is a financial network that blatantly continues to operate despite statements by governments that they will send law enforcement and the military to the home of every suspected Bitcoin user.
What will happen if there is a global ban on bitcoin trading?
The above statements were made shortly before the invasion of Ukraine, and the consequent economic sanctions imposed on Russia. A fact that led many to assume that the Eurasian giant Cryptocurrency will be used as a means of evasion.
Regardless of whether this becomes a reality or not, it is feared that if Russia evades the sanctions of Bitcoin, the United States and the powers of Europe He will criticize the cryptocurrency sector with a strong ban.
In fact, this possibility was already announced by the President of the European Central Bank (ECB), Christine Lagarde, who a few days ago Lawmakers urged To approve the regulatory framework on cryptocurrencies to avoid these quirks.
Specifically, increasing strict measures globally to limit trade in cryptocurrencies fits one of the scenarios considered, hypothetically, in the Casa Forum.
Stoner commented, stressing the importance of Maintaining the privacy of personal data.
However, the possibility of a strict ban has also been discussed with new bitcoins in mind, or those who are overly concerned with legal issues.
They were told about the use of decentralized and open source tools, the operation of which contrasts with the operations of centralized platforms, More vulnerable to government regulator.
Resorting to decentralized tools to circumvent the ban
In the supposed case of strict regulations or strong restrictions on the trading of Bitcoin and other cryptocurrencies in a country, the logical step is Use of decentralized platforms (DEX and Self-Guardian Governor), Casa members indicated.
We know that this (in the central exchanges) is where the pressure of the government will end, because any authority will try to exercise the maximum amount of control possible with the least amount of effort.
CEX or centralized exchanges are referred to by bitcoin as choke points to avoid, since “This is where the pressure comes in«.
Decentralized tools, on the contrary, are far from this regulatory pressure. as an example It deserves what happened in Canada during the truck drivers’ protestsfor those who were unable to block donations made through this type of platform, CriptoNoticias reported.