Nyet to Crypto

‘Russia cannot have its own cryptocurrency’ says Putin

Russian President Vladimir Putin holds his annual televised phone-in with the nation in Moscow on June 7, 2018. (File Photo)
 
Russian President Vladimir Putin may have dashed any hope of the nation adopting its own cryptocurrency, claiming it ‘goes beyond national borders’.
 
He made the comments during his annual live Q&A session with the Russian public, in which he discussed topics including the prospect of a Third World War, the conflict in Syria, the US trade threat and steel tariffs, and alleged meddling in the 2016 US Presidential Election.
 
On the live session known as ‘Direct Line’, Russian blogger Artem Khokolikov asked Putin three questions about cryptocurrency. The questions were whether Russia will adopt its own cryptocurrency, whether it will be controlled by the government, and if cryptocurrency could, in the future, completely replace standard money.
 
Putin said:

“Russia, by definition, cannot have its own cryptocurrency, just as no other country can have its own cryptocurrency…Because when we talk about cryptocurrencies, we refer to something that goes beyond national boundaries.”
 
In regards to cryptocurrency one day becoming a regular form of payment, the Russian President claimed that although market experts say Japan has partially accepted it as payment, ‘it doesn’t (always) work in other countries’.
 
He added:
 
“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.”
 
But Putin admitted “this phenomenon has its place in the world, and it’s developing”.
 
He said Russia would continue to analyze the global market, adding ‘at some stage we will need to look at how we can take part in this process, how we can use it to avoid all sorts of restrictions in the sphere of international financial activity, among other things.’
 
Putin’s dismissive comments of Russia adopting its own cryptocurrency come less than two months after the nation’s third largest bank, Gazprombank, announced plans to start cryptocurrency transactions later this year in Switzerland through its Swiss subsidiary. In January, Russia’s largest bank, Sberbank, also stated its intentions to run cryptocurrency exchange in the alpine nation.
 
Putin's cryptocurrency commentary treads on statements within a landmark draft law published by the Russian Finance Ministry in late January – which Putin himself requested in October of last year – regarding regulation of the issuance, trade, and storage of cryptocurrencies. It also spells out standards for ICOs.
 
As of May 2018, nearly 2,000 cryptocurrency specifications were in existence globally and according to research from the University of Cambridge, there were up to 5.8 million unique users using a cryptocurrency wallet in 2017.