Bitcoin's price has plummeted by around 20% after exchange MT Gox temporarily suspended withdrawals, Apple kicked a popular wallet off of its App Store and Russia outlawed the crypto-currency.
As to that Russian statement, that depends on what they mean by "money surrogate"... They don't ban rouble-linked or rouble-denominated financial derivatives (which ARE money surrogates, funny enough). How is that different from rouble-linked digital assets?..
If I buy 10 "digital apples" at 100 roubles each, and then give those "digital apples" to a third party who then converts them back to roubles, where does "money surrogate" come into a picture (unless you count barter as one)?..
One needs to differentiate between digital currency and digital cash. They are similar, but not the same. One is a wild dark horse, the other is a civilized pathway to the future.
© Finextra Research 2014