Bitcoin: From a Protocol of Freedom to an Instrument of Fiat Utilization — Analysis of Satoshi’s Goals and Russian Regulation 2026

22 Jul, 2026
| Salome K

Bitcoin: From a Protocol of Freedom to an Instrument of Fiat Utilization — Why Violating the Goals of Bitcoin Makes Its Use Unlawful, and How Russia Integrates Decentralization into State Frameworks

Disclaimer

This material is an analytical study prepared by the editorial board of the journals “Kafedra” and SforNews. The material is based on open data, official documents, and public statements. It is not legal advice, investment advice, or a call to action. The authors do not provide advice on the purchase, sale, or storage of any assets, including cryptocurrencies.

The purpose of the material is to verify public narratives, check the statements of regulators and financial institutions for compliance with facts, and record discrepancies between words and actions. All conclusions are probabilistic and analytical in nature. The editorial board is not responsible for any financial or legal decisions made based on what has been read.

The material contains a critical analysis of the actions of government bodies and financial institutions. It treats regulators and their followers without familiarity, but with the necessary degree of skepticism that journalistic ethics requires when working with public statements affecting the rights of citizens.

Goals of the Technology: Why Satoshi Created Bitcoin

On October 31, 2008, in the midst of the global financial crisis, when governments were bailing out banks at the expense of taxpayers, Satoshi Nakamoto published the “White Paper” — a technical manifesto of a new monetary system.

Bitcoin was not created as an “investment asset,” “digital gold” for speculators, or a “hedging tool.” Its goal was radically different.

The main goal was to create a decentralized electronic cash system that would allow value to be transferred directly between parties, bypassing financial intermediaries — banks, payment systems, and states.

The main quote from Satoshi Nakamoto, which reflects the essence of the idea:

“A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.”

Satoshi did not write: “Buy bitcoins and wait for them to rise in price.” He wrote: “Transfer value directly, without intermediaries.” Bitcoin was created as a system of electronic cash for P2P payments, and not as a speculative instrument.

The Goal of Bitcoin as an Essential Condition for Its Use: Legal Aspect

In our materials, we have repeatedly emphasized that the purpose of creating bitcoin is not just a historical fact, but an essential condition for its use. This thesis has deep legal implications.

What does “essential condition” mean?

In civil law, a condition is considered essential if, without it, a contract or transaction cannot be considered concluded. With respect to bitcoin, this means that its use for its intended purpose (as a system of direct P2P payments) is an integral part of its legal nature.

When the community or individual participants use bitcoin for other purposes — as a speculative instrument, a store of value, or an investment object — they violate the author’s idea embedded by Satoshi Nakamoto.

Violation of the terms of the gift agreement for an intangible asset

Bitcoin, as an intangible asset, was transferred by its creator into the public domain. In essence, this is an act of donation. Like any donation agreement, it implies certain conditions for the use of the gift.

If the recipient of the gift (the community, users) uses the gift for other purposes, this is a violation of the terms of the donation. Therefore, the use of the technology becomes illegal — not in a criminal law sense, but in the sense of violating the original legal regime established by the creator.

Architectural conclusion from our materials:

“By violating the goals of bitcoin, the community violates the author’s idea, thereby using the product for other purposes and, accordingly, violates the terms of the gift agreement for the intangible asset. Consequently, it uses the technology illegally.”

This conclusion changes the entire optics of perceiving bitcoin. It is no longer just “a technology that can be used in any way.” It is a gift with a condition, and its use outside this condition is unlawful.

Key properties of the protocol (from our materials):

• Decentralization of the ledger — complete, without a single point of failure.

• Fixed issuance — 21 million BTC, mathematically guaranteed.

• Proof of Work (PoW) — linking to physical energy costs.

• Absence of intermediaries in the protocol — peer-to-peer transactions without a third party.

• Public domain — the protocol was transferred by the creator without exclusive rights.

Nuances: How the Protocol of Freedom Became Bitkin

Over the 18 years of the technology’s existence, a fundamental distortion has occurred. Bitcoin was captured by financial institutions, turned into a speculative instrument, embedded in the banking system, and encumbered with restrictions that contradict its architecture.

In our materials, we introduced a fundamental distinction:

Bitcoin — the pure protocol, a decentralized electronic cash system. Architecture, mathematics, code. Independent, ungovernable, free.

Bitkin — what people have turned bitcoin into: a speculative asset on exchanges, a tool for enrichment, “digital gold” for investors. Embedded in the same banking system from which it was supposed to liberate.

The first perversion: bitcoin was turned into an “investment asset”

Bitcoin was created for transferring value. Instead, it was turned into an “asset” that needs to be bought and held, hoping it will rise in price. This is not using bitcoin. This is speculating on bitcoin.

The second perversion: bitcoin was forced into the infrastructure of banks and exchanges

Bitcoin was created as a system where everyone is their own bank. Instead, people store bitcoins on exchanges, trusting their keys to third parties.

“Millions of people think they own bitcoin, but in reality they own a promise from the exchange.”

The third perversion: bitcoin became a store of value, not a medium of exchange

Satoshi created bitcoin as money. Money must move. Instead, bitcoin became “digital gold” — it is hoarded, not spent.

Legal Nuances: Recognition of Bitcoin as Property in the Russian Federation

In Russia, a process is underway: the state recognizes bitcoin as property, but only when it is advantageous to do so.

When it is necessary to collect taxes — bitcoin is considered property. When it is necessary to seize it within the framework of criminal cases — bitcoin is considered property. When the owner wants to protect their rights in a civil court — bitcoin is NOT considered property.

Key facts from Russian legislation (2026):

• In the Tax Code of the Russian Federation, bitcoin is recognized as property for tax purposes.

• In the Criminal Code of the Russian Federation, as of February 20, 2026, bitcoin is recognized as property for criminal proceedings (Federal Law No. 38-FZ), which allows it to be seized, arrested, and confiscated.

• The Constitutional Court of the Russian Federation, in Resolution No. 2-P of January 20, 2026, confirmed that claims related to the possession of digital currency are subject to judicial protection.

What judicial practice says:

Judge of the Supreme Court of the Russian Federation Evgeny Rudakov stated at the XIII St. Petersburg International Legal Forum:

“Now courts are confidently moving towards recognizing digital currency as property and the need to extend to it all the norms of the criminal procedure law. They make decisions on the arrest or confiscation of digital currency, although the Code of Criminal Procedure of the Russian Federation and the Criminal Code of the Russian Federation do not directly provide for this.”

Technical problem: A court may issue a confiscation order, but without private keys it is technically unenforceable. Bitcoin is not in a bank account — it exists in a decentralized network, and access to it is controlled only by the owner of the private key.

“You cannot prohibit what you do not control. You cannot control what is decentralized.”

Russian Regulation 2026: Decisions of the Authorities

In 2026, the State Duma adopted a number of decisions legalizing the cryptocurrency market in Russia. In our materials, we examine these nuances in detail [1].

Key decisions of the Russian authorities:

• The Law on Digital Currencies (April 2026) — legalizes investment and trading activities with cryptocurrencies [1].

• Annual limit for non-qualified investors — 300,000 rubles (about $4,000) [1].

• Non-citizens without the status of a qualified investor are allowed to trade only three tokens: Bitcoin, Ethereum, and USDT [1].

• As of September 1, 2026, the largest banks are obliged to provide clients with the ability to operate with the digital ruble [1].

• The digital ruble is fully controlled by the Central Bank, which leaves little room for private sector innovation [1].

Position of the Central Bank (June 2026):

On June 25, 2026, the Bank of Russia published a consultation document on the development of the ruble stablecoin market [1]. The regulator notes that the global stablecoin market has more than doubled over the past two years. However, the Central Bank proposes to maintain the ban on the use of digital financial assets and stablecoins in domestic settlements between residents, as this could lead to fragmentation of the payment market [1].

Key contradiction: Russia recognizes bitcoin as property but prohibits its use as a means of payment within the country. This creates a situation where bitcoin is legal for ownership and investment, but illegal for its intended purpose — as money for settlements.

User Statistics: Global Adoption

Despite all regulatory attempts, the global adoption of cryptocurrencies continues to grow at record rates.

General figures:

• The total number of cryptocurrency users by 2026 reached approximately 559 million, which is 33% more than 420 million in 2023.

• Growth rate: According to a BlackRock study, cryptocurrency reached 300 million users in 12 years — approximately 20% faster than the internet, and 43% faster than mobile phones.

• Regional leadership: The Asia-Pacific region holds the largest share of the global crypto market — 37.6%.

• Ownership in the US: Approximately 30% of American adults (about 70.4 million people) own some form of cryptocurrency.

Stablecoins — a new reality:

• The total capitalization of the stablecoin market at the end of June 2026 is approximately $312–314 billion.

• The annual transaction volume with stablecoins in 2026 is forecasted at $17.2 trillion.

• Tether (USDT) — capitalization around $187.4 billion.

• USDC (Circle) — capitalization around $73.6 billion.

Architectural Conclusion: Returning to the Origins

Satoshi Nakamoto created a mathematically perfect system. But the system is just the beginning. The people who use it have proven to be less reliable than the code.

The question is not “how to control bitcoin.” The question is “why do we allow ourselves to be controlled using bitcoin.”

In our materials, we propose a return to true bitcoin — to what Satoshi intended. Not to what speculators created. For this, we developed the Supplement to Satoshi Nakamoto’s White Paper (WIT ST EED NERD) [2][3][4] — a new way of ownership that makes bitcoin not just digital gold, but perceptual property — an asset that exists simultaneously mathematically and consciously.

Summary Table: From Goals to Reality

Aspect	Satoshi’s Goal (2008)	Reality (2026)
Purpose	Electronic cash system for P2P payments	Speculative asset, “digital gold“
Intermediaries	Absent in the protocol	Exchanges, banks, custodians, ETFs
Issuance	Fixed, 21 million coins	Derivatives inflate the supply
Ownership	Private key = ownership	Exchange promise, balance sheet entry
Regulation	Outside jurisdictions	GENIUS Act (US), MiCA (EU), Russian law on DFA
Use	Direct exchange withoutintermediaries	Investment, hedge, speculation

Sources

1. “The Battle for the Digital Dollar: How Stablecoins Are Becoming the Future Global Money” // SforNews, editorial board “Kafedra“, 2026. — analysis of Russian regulation, the Central Bank’s position, and 2026 legislation.

2. Tatyana Burmagina, Satoshi Nakamoto, Airat Minikhuzin. Supplement to Satoshi Nakamoto’s White Paper (WIT ST EED NERD) // “Academy of Trinitarianism”, 2025. — description of the fourth era of money and perceptual property.

3. Tatyana Burmagina, Satoshi Nakamoto, Airat Minikhuzin. Supplement to the Original Satoshi Nakamoto White Paper | WHITE PAPER SUPPLEMENT: WIT ST EED NERD // SforNews, 2025. — decoding of the new ontology of ownership.

4. “Why Bitcoin Needs a Supplement: Deciphering WIT ST EED NERD” // SforNews, editorial board “Kafedra“, 2026. — analysis of the four implementation bugs and their solutions.

5. “Bitcoin Is Not an Investment. It Is a Protocol of Freedom” // SforNews, editorial board “Kafedra“, 2026. — legal analysis of the recognition of bitcoin as property and the violation of constitutional rights.

Conclusion

Bitcoin has come a long way from the idea of digital freedom to a fully regulated asset. In Russia, this path ended with the creation of a system that tries to combine global technology with national interests: to maintain control over the financial system, legalize foreign trade settlements, and give citizens legal but limited access to a new class of investments.

But, as we write in our materials:

“Bitcoin is a protocol of freedom. It does not need legalization. It needs understanding.”

And while states and banks try to integrate bitcoin into the old system, true bitcoin continues to exist outside of it — as a protocol that cannot be prohibited because it cannot be controlled.

The material was prepared based on analytical materials from the journals “Kafedra” and SforNews. When citing, a reference to the original source is mandatory.