The President of the Russian Federation – Vladimir Putin – agreed with the country’s central bank that cryptocurrencies are highly volatile and pose several risks to the financial network. However, he sees potential in cryptocurrency mining as it could give Russia “certain competitive advantages.” As reported last week, the Bank of Russia intensified its harsh stance on crypto by proposing a complete ban on crypto activities.
The Bank of Russia compared cryptocurrencies to a pyramid scheme.
The Bank of Russia argued that the asset class reminds of a pyramid scheme, undermines the sovereignty of monetary policy, and threatens the local financial system. In a recent conference, the Russian leader – Vladimir Putin – said he is aware of the ongoing discussions on the matter and outlined that crypto regulation is currently “in the spotlight.” Similar to the central bank, Putin stated that the expansion of the asset class carries certain risks to investors given its high volatility. On the other hand, the President is in favor of crypto mining as it could be beneficial to his nation.
Putin urged the Bank of Russia and the local government to discuss the topic again.
The President said, “although, of course, we also have certain competitive advantages here, especially in the so-called mining. I mean the surplus of electricity and the well-trained personnel available in the country.” Subsequently, he urged the Bank of Russia and the local government to discuss the topic again and “come to some kind of unanimous opinion.” Putin’s comments came one day after Ivan Chebeskov – a member of the Ministry of Finance – opposed the ban on cryptocurrencies in Russia. According to him, such legislation could lead Russia to fall behind in the global tech industry.