Russian President Vladimir Putin Calls Crypto A High Risk Even Though Cryptocurrencies Have A Future
JAKARTA – In the midst of the widespread use of cryptocurrencies, Russian President Vladimir Putin issued a statement regarding cryptocurrencies when filling an event at the VTV Capital Investment Forum “Russia Calling!” 2021. The number one person in Russia explained that cryptocurrencies carry serious risks as reported by Life.ru.
“As for cryptocurrencies, it is banned in some countries. It is not backed by anything, the volatility is high, the risk is high. I also believe that we need to listen to those who talk about high risks," Putin said.
Not stopping there, President Putin continued that cryptocurrencies may have a future. However, at this time they are still studying all crypto developments.
Bitcoin News assesses that cryptocurrency money is not comprehensively regulated in the Russian Federation. Although the law “On Digital Financial Assets,” which came into effect in January, provides some clarity regarding virtual coins and certain related activities such as their issuance, many aspects such as mining and taxation still require regulation through new laws.
However, the Russian Central Bank still opposes efforts to legalize Bitcoin cs to be used as a legal medium of exchange. In September, Putin's press secretary, Dmitry Peskov, was also harsh on the matter. Peskov considered that Russia had no reason whatsoever and was not ready to recognize Bitcoin as a legal medium of exchange.
Putin's latest comments on cryptocurrencies are not the first of the year. In an interview with CNBC on the sidelines of the Russian Energy Forum in Moscow last October, he acknowledged that decentralized digital money could one day be used in oil trade settlements, although that is too early to implement. He accused the United States of undermining its own currency and pointed out that dollar-denominated settlements declined while countries reduced their dollar reserves.
The Kremlin has been pursuing officials holding cryptocurrencies as part of its efforts to fight corruption in the government. In August, the presidential administration published a decree signed by Putin instructing several ministries and the central bank to examine declarations submitted by government employees about their digital asset holdings.
At the time of writing, data reports from Coingecko show that the price of Bitcoin (BTC) has decreased 0.3 percent in the last 24 hours. The fall in the price of BTC affected most of the altcoins.