Saturday, July 2, 2022

Russian President says crypto-mining could give them certain competitive advantages.

The Takeaway:

The President of Russia Vladimir Putin sees potential in cryptocurrency mining as it could give Russia “certain competitive advantages.”

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.

Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

Leave A Reply

Please enter your comment!
Please enter your name here