TL;DR Breakdown
• The Russian government seeks an alternative to blocking purchases in dollars.
• Putin said that he would not follow the measures imposed in China against cryptocurrencies.
Russia, one of the most prominent countries globally, which had remained impartial regarding the cryptocurrency market, stopped being silent and announced its measures. The country led by Vladimir Putin said it is not interested in cryptocurrency regulations, taking as a reference China’s bans that occurred this year.
Putin showed his support for cryptocurrencies. This could indicate that the country prepared measures that favor the crypto market that, for citizens, is almost non-existent.
Putin talks about Bitcoin in Russia
With more than a decade in operation, the cryptocurrency market has suffered from the verification applied by many countries in the world in recent months. China ranks as the main cryptocurrencies regulator, claiming to be used for illicit businesses and virtual scams. Under this thought, China banned crypto trading and even crypto-mining in mid-2021.
Putin said that cryptocurrencies, especially Bitcoin, can be traded. The Russian president believes in the new financial market, so he does not hesitate to affirm that Bitcoin can be used as a payment method. However, Putin clarifies that it would be hasty to use cryptos to trade oil and other materials that favor the country.
According to the Russian finance minister, Putin is not attracted to cryptocurrency regulation, as China did. But, many financial agencies in the country have warned enthusiasts about virtual scams so they can avoid them. Although they are only warnings, it is not a concrete prohibition imposed by the financial agency on decentralized currencies.
Putin’s government seeks alternatives to sanctions in Crimea
As a world power country, Russia seems untouchable, but in reality, it has been suffering from economic blockades since 2014. These sanctions occurred after the attack in Crimea, a Russian peninsula, which has left them without dollar funds.
Faced with these blocks towards fiat currency, Russia looks for alternatives to exchange rubles, where cryptocurrencies come in. The country believes in cryptocurrencies to end fiat currencies such as the US dollar.
Putin is also open to cryptocurrencies because the United States wants to impose sanctions against them. The president in Russia wants to express that his country does support the new financial technologies while the Americans fear them.
All these clarifications from Putin could increase the crypto adoptions wave in the country, which would improve the capitalization of each token. Russia could create laws supporting cryptocurrencies, but it is something that Putin-led financial ministers would have to do.
