Bitcoin is the currency of the Internet: a distributed, worldwide, decentralized digital money. Unlike traditional currencies such as dollars, bitcoins are issued and managed without any central authority whatsoever: there is no government, company, or bank in charge of Bitcoin. As such, it is more resistant to wild inflation and corrupt banks.
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It's always interesting to see a country implement policies shooting itself in the foot. It's like they're trying to guarantee their citizens won't be at the forefront of the latest technology and be entirely left out of a new asset class.