Tuesday, July 5, 2022

Vladimir Putin Talks About Bitcoin and Other Digital Currencies

Russian President Vladimir Putin spoke a little on Bitcoin and the many digital currencies out there in an educational forum broadcast on domestic TV network Russia 24. His words come after reports that the nation is trying to pass a law to ban them.

Local news sources such as Gazeta, state-operated RIA and TASS are reporting that the president is not totally against the digital currencies and that the Bank of Russia, the country’s most important bank, has not rejected it and has explored ways to make it work. Digital currencies like Bitcoin are popular at the moment and this year the number of merchants accepting Bitcoin went over 100,000. Today, there are more than 500 different cryptocurrencies to choose from.


BitcoinHe also spoke on the digital currency being used as money and said he thinks it’s a little problematic but that it could become a new and helpful way to manage or calculate transactions. “Bitcoins are backed by nothing. This money is backed by nothing, that’s the point, this is the major problem. They are not really linked to anything and backed by nothing,” Putin said. “However as an accounting unit, these ‘coins’ or whatever are they called, they can be used, and their adoption becomes wider and wider. As some kind of unit in some account, probably, it’s possible.”

Putin added more:

[quote_center]”We do not reject anything, but there are serious, really fundamental issues related to its wider usage, at least, today.”[/quote_center]

A spokesperson for the president later cleared the air and said in a separate announcement that he was talking about all the digital currencies out there and not just Bitcoin.

“It’s the biggest sign of Bitcoin legality now in Russia,” ICBIT Trading CEO Aleksey Bragin told CoinDesk. “It was not forbidden before, but it was impossible to operate any Bitcoin business in Russia (no bank accounts, to start with), and mining was always a gray area.”

Local Community

Putin did not say much about the digital currencies but members of the local community liked what they heard because the country doesn’t usually support new technology. His words gave many people hope. “While Mr. Putin didn’t say anything concrete about Bitcoin legislation in Russia, it’s definitely a good sign that our government doesn’t want to prohibit something before getting a better insight in the field,” Indacoin CEO Stanislav Kosorukov said.

Ivan Tikhonov, who is part of Bitcoin news source BTCsec, said that the president’s words did a lot to advance on the talks. They now know that the government won’t try to get rid of it right away and might support it later on. “One thing is certain, no one talked about the fact that Bitcoin is prohibited or required to be prohibited,” he added.

The announcement comes just days after several reports said that the country’s lawmakers were looking to ban the use of digital currencies. Many countries have already banned it and the list has grown over the last few months. Countries like Bolivia and Vietnam have made it clear that it is illegal. Others like Ecuador have also banned it but they have plans to create their own cryptocurrency later on.

Sean Farlow
University graduate with a bachelor's degree in business administration. Big fan of sports teams from South FL.


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