President Vladimir Putin Addresses Crypto in His Direct Line Address

Russia will not launch a state-backed cryptocurrency

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There have been rumors in the past that Russia was going to issue its own cryptocurrency. However, in an interview, President Vladimir Putin did not seem to support the idea. Putin issued a very negative commentary question about Russia owning and issuing its own digital currency. Speaking in a live session mainly known as the direct line President Putin was asked by a Russian blogger Khokholokov whether Russia would own its own digital currency.

More to that the blogger asked the president whether the digital currency would be controlled by the government or not and lastly whether the president through cryptocurrency would replace the regular standard money.

In his reply, President Putin started by stating that Russia cannot own its digital currency because cryptocurrencies cannot be owned by a centralized state because from the definition of a cryptocurrency it goes beyond the borders of a country. Putin went on to say that Russia does not control crypto mining but they treat it very carefully.

When talking about using cryptocurrency as a form of payment President Putting noted that even though Japan had partially adopted cryptocurrency payment the practice does not work for all countries. He added that:

“There is no specific relationship between the Central Bank of Russia and cryptocurrencies and we neither consider crypto as a means of payment nor a store of value. This is because the cryptocurrencies are not backed by any bank or state. Investors should treat this market cautiously and carefully.”

President Vladimir Putin added that Russia will continue monitoring all the activities in the world in order for the country to determine how it can take part in the developing processes. He also notes that Russia was looking into how they can use these digital currencies so as to avoid restrictions in the international financial activities like the use of digital currencies to avoid Western Sanctions which have been imposed on Russia.

President Vladimir Putin was speaking during the 16th Direct Line event which happens once a year. During this event, Russians are given a chance to ask the president questions about domestic and foreign policies.

When it comes to a state-backed cryptocurrency several state and private entities in Russia have been discussing the idea of launching a BitRuble not even CryptoRuble. This discussion has been in place since 2015 and in January 2018 there was an agreement to launch a state-backed digital currency in 2019. A Russian economist said that a CryptoRuble would help Russia avoid the pressure of financial sanctions.

Towards the end of May this year the Russian state approved its first reading of Russian major blockchain ate cryptocurrency related bill about digital financial assets. The final version of that bill is set to be passed before July and it’s aimed at regulating the whole cryptocurrency industry in Russia

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