While the Bitcoin is becoming increasingly widely accepted as a means of trading, governments and banks in more and more countries are warning about the dangers of using it digital coin.
Russia is now among these countries, as the Central Bank issued a warning, featuring the use of Bitcoins as particularly risky.
According to the bank, virtual currencies or "money substitutes" have been found to be illegal under the federal law of the country.
Bitcoin is an independent currency that is not regulated by any government and has a high risk of depreciation due to its volatility (it can rise or drop hundreds of dollars from one day to the next).
The bank warned that by using the currency, users may, knowingly or unknowingly, engage in illegal activities, such as money laundering or terrorist financing.
Given that Bitcoin is often used in illegal activities such as drug sales (Silk Road) or money laundering (the recent capture of the BitInstant CEO), it is not surprising that Russia holds a negative attitude towards the digital currency.
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