Instead of promoting or banning bitcoin, authorities should educate public about it, according to Artem Genkin. Access to the cryptocurrency should be denied to those who do not realise its risks.

Bitcoin polarises the world, says Genkin in his article in Harvard Business Review Russia. Progressists heartily welcome the cryptocurrency, though “the world has not became and will never become substantially richer or happier just multiplying the amount of quasi money.” Others call for total or partial ban on bitcoin, seeing it as a potential terrorist weapon and creating a difficult environment for the cryptocurrency to operate, such as New York’s BitLicense. Regulators do not know how to classify bitcoin. It can be regarded at once as a currency, security, commodity, service, private money, fake money. Genkin describes current situation around it as full of “Shakespearean tension” and reveals his knowledge of medieval French poetry appropriately quoting François Villon: “Welcomed gladly, and spurned by everyone.”

According to the expert, the crucial thing about bitcoin for general public is that it is potentially highly profitable but at the same time highly risky. Therefore, those using it must be aware of the perils and accept the responsibility, similarly to those smoking, drinking or gambling - the activities, however harmful, not prohibited in most developed societies. Genkin believes he opts for a moderate solution proposing to block access to bitcoin to those who have not passed a financial education course. That is the only possible way, according to him, if the society wants to take off their shoulders the responsibility for those who are willing to take the risk.

Artem Genkin is a holder of the first in Russia PhD in the field of private money, President of the Center for Protection of Bank Clients and Investors and member of Russian National Payments Council Association. He has been studying bitcoin digital currency since 2014.

Alexey Tereshchenko