The Russian President stated that Central banks’ concerns about crypto-related risks are genuine, which can put the finances and economy of the country at risk.
- Earlier, the Central Bank of Russia proposed a complete crypto ban and related operations all over the region.
- Several officials and some authorities opposed the Central Bank’s crypto ban proposal.
- Some surveys have also described Citizens thoughts on crypto and their opinions about its usage.
Recently Russian President Vladimir Putin spoke about crypto and mentioned the suggestion of the Central Bank’s crypto ban. Not agreeing to the proposal altogether, the President said that crypto is highly volatile, can threaten the economy and pose a risk to the financial network. But he sees potential in crypto mining operations and thinks it can bring an advantage to Russia.
Bank of Russia proposing the crypto ban
Earlier the largest Bank in the country, the Bank of Russia, stated crypto is highly volatile and a threat to the country’s economy and risky investment for investors. The Bank considered it to be more of a pyramid or Ponzi scheme that poses a threat to monetary policy’s sovereignty and undermines the local financial system.
After the Bank’s proposal, discussions about crypto are inside the country at various levels, from ordinary citizens to the Russian parliament. Several Russian citizens who know about crypto have also been surveyed and asked their opinions.
Putin’s take on cryptocurrency usage and benefits from mining
President in a recent conference said that he is aware of the discussion going on the matter about crypto and its regulations. He also outlined that the demand for regulations is also in the spotlight and has enough attention.
Speaking about cryptocurrencies risks and threats, Putin mostly followed the views of the Central Bank, citing its high volatility and swift fluctuations in price. But at the same time, he seems to consider crypto mining a competitive advantage for Russia.
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Russia’s advancements in Crypto
While discussing the advantages, he mentioned surplus electricity and well-trained people inside the country. Additionally, he asked the Bank of Russia and local governments to discuss crypto again and try to find some middle ground and some way that leads to benefits to the country through the digital assets.
Since China shut down crypto use and related operations including trading, exchange and even mining, other countries have grabbed the chance and emerged as new crypto mining sites. America and Kazakhstan are at top places respectively when it comes to most hash rates, and Russia stands at third spot with a hash rate of approx 14%.
According to official data, there were more than 17 million active crypto wallets in Russia. Reports also puts about approx $67 billion of investment in Crypto was by Russian investors.