While Bitcoin has seen a massive growth in popularity in areas from all around the world, it seems like some Governments are still strongly against mass adoption and use of the digital currency. One such example is Columbia, which, according to recent reports, has just declared Bitcoin illegal, thus joining another handful of nations that have taken the same step.
The announcement was made at the beginning of 2017, by the main regulatory agency operating in Columbia, known by the name of Superintendency of Corporations. It seems like the action may have been taken to stop the growth of Ponzi-based investment clubs that operate via digital currencies. In fact, the operators of these investment clubs encourage people throughout the country to invest in bitcoin, and promise huge returns, yet this is not always the case, especially when investing in a Ponzi scheme- in fact, some of these schemes have gotten to the point of being hilarious, considering the fact that some promise a 100% return on the initial investment.
Not only this, but the regulatory agency has also stated that in the country of Columbia, the only medium of exchange that is deemed as legal consists of the country’s fiat currency, issued by the Bank of the Republic.
It is worth pointing out that the move to make bitcoin illegal can also put Colombia’s economy at risk, considering the fact that the digital currency is growing in both value and popularity, thus creating a strong market that Colombia will have no access to unless they give up on their decisions. Rather than banning Bitcoin, economic analysts believe that the regulatory agency in Colombia should’ve taken a few steps in the direction of educating the public about Ponzi schemes, why they never work, but also focusing some of their efforts on targeting the actual promoters of these scams, rather than denying the public their access to a very utile medium of monetary exchange. Reports indicate that in the long run, the ban can lead to the deterioration of the economy. In fact, other countries on the continent, including Venezuela, have proven that Bitcoin can actually help a country remain standing when they deal with an economic crisis.
Based on everything that has been outlined so far, what do you personally think about Colombia banning Bitcoin, at a moment in time when the currency has managed to reach a new peak in terms of its value? Let us know your thoughts in the comment section below.