The Russian President says that cryptocurrencies go beyond borders.
In the live session with the Russian President known as the “Direct Line”, Vladimir Putin answered a few questions about cryptocurrencies put forth by the Russian blogger Artem Khokholikov.
“Will Russia have its own cryptocurrency? Will it be controlled by the government? Do you think that in the near future, cryptocurrency will completely replace regular, standard money?
Putin answered that since cryptocurrency is not a centralized entity by definition and hence Russia or any other country for that matter could not actually “own” a cryptocurrency. The President said cryptocurrency “goes beyond borders”.
Putin went on to say that while cryptocurrency mining is not altogether regulated in Russia, however, they were treating digital currencies with caution. Putin also said that cryptocurrency as a form of payment may not work in other countries, although it is partially accepted now in Japan.
Another question that was raised was “The relationship of the Central Bank of the Russian Federation to cryptocurrency [is that] it considers cryptocurrency neither a means of payment nor a store of value. Cryptocurrency is not backed by anything. One should treat it cautiously, carefully.”
The President of Russia believes that the country must keep an eye on this “phenomenon developing in the world” and plan how Russia can “participate in the process”. Putin wants to examine “how we can use it [cryptocurrency] in order to avoid any restrictions in the field of international financial activity”.
The question about a government-issued cryptocurrency is triggered by the fact that the government has been planning on releasing a “CryptoRuble” or “BitRuble” since 2015. In January this year, a tentative launch for the state-issue cryptocurrency was set for mid 2019. An economic advisor to Putin also said that the CryptoRubble could help to lighten the pressures of financial sanctions.
In May, Russia’s major ‘crypto and blockchain’ bill, “On Digital Financial Asset” was approved the first three readings by the Russian State Duma. On July 1, the final version of the bill is set to be passed. The bill could effectively regulate the entire cryptocurrency industry in the country.