In a recent meeting with the government members through a video conference, Vladimir Putin, the president of Russia, claimed that the country has its competitive advantages primarily through bitcoin mining.
“As for cryptocurrencies, the Central Bank has its own position, it is connected with the fact that, according to the experts of the Central Bank, the expansion of this type of activity carries certain risks, and first of all for the citizens of the country, given the high volatility and some other components of this topic,” said Putin in the meeting.
“Although, of course, we also have certain competitive advantages here, especially in the so-called mining”
Vladimir Putin
Russia’s blanket ban on mining
On Thursday, Russia’s central bank presented prohibiting the use and mining of cryptocurrencies on the Russian domain, citing concerns to financial stability, individuals’ well-being, and the country’s monetary policy autonomy. The central bank claimed that hypothetical demand propelled cryptocurrencies’ fast rise and resembled a financial pyramid, signaling the risk of market bubbles endangering financial stability.
The bank advocated prohibiting financial institutions from engaging in any cryptocurrency transactions and suggested that measures be devised to stop transactions involving purchasing or selling cryptocurrencies for fiat currencies.
Does that mean good news for crypto in Russia?
Putin said in his recent meeting that he would ask both the Russian government and the Central Bank to reach a consensus during the discussion. Following this, he would request that the debate be held soon and then report on the outcomes of the debate. Various other topics regarding the country and its safety were also discussed during the meeting.
Scepticisms of how and what to do with cryptocurrency and its related activities have always risen from many countries. Countries including India have long wanted to ban crypto, but the recent rising adoptions have urged them to think about regulations and a proposed framework. Countries including El Salvador regulating bitcoin as a legal tender has pushed other governments to voice their opinions.
But it’s evident from the recent developments that even multinational companies started adding crypto as a viable payment option, and they even started opening up new job positions in the crypto sector.