Russian President Putin Comments on Cryptocurrency in Russia

During his 16th annual “Direct Line” on TV, Russian President Vladimir Putin has shared his thoughts in regards to the topic of cryptocurrency in Russia. What more do we know?

8 June, AtoZ Markets The President of Russia Vladimir Putin has spoken on the topic of cryptocurrencies during his annual live question and answer session with the Russian public.

Russian President Putin Comments on Cryptocurrency in Russia

During the “Direct Line,” Russian blogger Artem Khokholikov has asked the Russian leader three questions in relation to the cryptocurrency:

 “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 our regular, standard money?”

Putin has stated that Russia cannot have its own cryptocurrency since cryptocurrency “by definition” cannot be owned by a centralized state. He has added that cryptocurrency “goes beyond borders.” President further mentioned mining, adding that Russia does not have any active regulations yet, “treat[s] it very carefully.”

Regarding cryptocurrency’s status as a form of payment, Putin has stated that even though Japan has partially adopted cryptocurrency as payment, “it doesn’t work in other countries.” He has explained:

“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.”

Russian CryptoRuble

The president of Russia then went on to say that Russia must keep an eye on this “phenomenon developing in the world” to understand how Russia can “participate in the process”. Moreover, he has highlighted that Russia should analyze “how we can use it [cryptocurrency] in order to avoid any restrictions in the field of international financial activity.”

This Q&A session is Putin’s 16th annual “direct line” on live TV that gives Russian public the chance to ask the president questions. The questions are usually aimed at addressing certain issues in Russian local and foreign policies.

In relation to the government-issued cryptocurrency, Russia has previously been discussing the possibility of releasing a “CryptoRuble.” Earlier this January, a preliminary launch for this cryptocurrency has been scheduled for mid-2019.

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