The Russian Ministry of Finance does not desire to eliminate bitcoin but regulates it. Vladimir Putin clarified that Russia counts on a surplus of electricity.
Within the Russian government, there is a debate going on about the controversial suggestion of the Central Bank of Russia to prohibit the trade, use, and mining of Bitcoin in that nation.
Russian President Vladimir Putin highlighted this problem at a ministerial meeting that took place recently. Although the leader did not want to take sides on the financial regulator’s proposal, he expressed that his nation counts on many competitive advantages, especially when it comes to mining activities in its territory.
The Russian leader clarified that this nation has a surplus of electricity and counts on well-trained personnel to improve the development of the Bitcoin mining industry.
Putin said the Central Bank would not represent an obstacle for the nation to achieve technical progress and also pointed out that he is making the necessary efforts to implement the latest technologies in this area.
Putin defended the stance of the financial entity on the point of bitcoin volatility because it carries too many risks, first of all to citizens. The Russian president asked his ministers to continue the debate n on the subject and reach a unanimous decision among all the parties involved in such a discussion.
Officials and Other Representatives of Russia Openly Showed Disagreement with the Ban on Bitcoin
The proposal to prohibit bitcoin in Russia was not well received by the Ministry of Finance of that nation. Ivan Chebeskov, director of the financial policy department of that ministry, expressed that the minister of that portfolio currently shows a supportive stance on regulation but does not have a supportive stance on the ban on cryptocurrencies.
Chebeskov thinks that prohibiting cryptocurrencies in Russia could slow them and leave the nation behind in the high-tech industry relative to other countries. One of these nations is the United States of America, with whom relations approached a heated-up scenario. The United States of America currently has 42% of the world’s Bitcoin hash rate, while Russia holds only 13%.
On the other hand, the founder of Telegram, Pavel Durov, expressed himself regarding the situation. Durov highlighted that banning the cryptocurrency industry will inevitably crush and reduce to dust many high-tech sectors of the economy.
Durov also manifested that the measures against the cryptocurrency industry would encourage an exodus of technology and information experts to more friendly regions.
The news regarding bitcoin in Russia appeared on January 20, when the Central Bank of Russia pointed out that bitcoin and cryptocurrencies represent a threat to the well-being of Russian citizens and the financial system’s balance.
The financial entity suggested banning bitcoin and other relevant cryptocurrencies as a method of payment through a series of laws and bills.
By: Jenson Nuñez
