Russian Economy Minister Comments On Bitcoin

Girish Chugh

November 30, 2018 11:28 am

Bitcoin News

Russian Economy Minister Comments On Bitcoin
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The cryptocurrency space, in spite of its turbulence, has been a subject which drives significant international interest in a great number of projects in new fields, chiefly blockchain technology. In an investment forum, Russia Calling, organized by VTB Capital, the Russian Economy Minister, Maksim Oreshkin has said that despite Bitcoin’s value ordeal, it has influenced the world positively by uplifting investments in new technologies.

Oreshkin said:

You may recall what I said, for example, last year, when bitcoin’s price jumped up to $20,000, and now it is lower than $4,000, we said very simple things. Bitcoin itself is a soap bubble, it deflated, that’s what happened. […] Unfortunately, many people were affected (because of their investment in cryptocurrency), but again, in terms of new technologies, new businesses, it gave us a positive impetus.”

Until now, the legal position of crypto exchange, ICOs, and mining have not been decisively built in Russia. The authorities have not proactively approached the matter and are doing little more than issuing indefinite disclaimers and investment advisories every now and then.

Many prominent figures have voiced in support of blockchain adoption for various reasons such as the usage of a gold-linked cryptocurrency for protection of arms export industry, adoption of DLT and elimination of abuse in the pension fund industry. But it is still a long way from happening. So far, the Russian state’s interest in Bitcoin has limited the supply of hard-to-trace cash for foreign missions.

As of March, three draft bills were submitted in the Russian parliament, which aimed to correct the regulatory gap. The laws in the proposition included a clause stipulating Russia’s refusal to recognize digital monetary assets as legal tender within their boundaries. However, past reports indicate that the country is closely inspecting the possibility of circling US-imposed sanctions using cryptocurrency as the main solution.

In his address in June, President Putin stated that the state continues to observe the cryptocurrency “phenomenon” with keen interest. But they have not come to a conclusion with respect to the issue of tokens yet. On the other hand, during FIFA world held this year in Russia, Cryptocurrencies were accepted in hotels and few hospitality zones as millions of fans around the globe arrived in the hosting country.

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