Vladimir Putin Says Crypto Could Possibly Serve Role as Settlement Unit

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In Brief
  • Russian President Vladimir Putin didn't outright dismiss cryptocurrencies, but said that they were still in the nascent stages.

  • He highlighted the lack of stability as one major pain point.

  • Russia’s Deputy Finance Minister also confirmed that the country would not ban cryptocurrencies.

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Vladimir Putin offered an undecided take on cryptocurrencies at the Russian Energy Week conference in Moscow. The Russian President said that cryptocurrencies could find use as a settlement unit, but that it was still too early to say if it could be used in energy transactions.

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Russian President Vladimir Putin, in an interview with CNBC, said that cryptocurrencies were too early in their lifespan to consider them for niche use cases like energy transactions. He did say there is a possibility that the asset class could serve a role as settlement units. Putin also said that there was no guarantee for cryptocurrencies.

CNBC moderated a panel in Russia for the Russian Energy Week, where Putin mainly spoke of the energy industry, briefly foraying into cryptocurrencies,

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The Russian President was referring to cryptocurrencies being used for oil, energy, and raw material-related transactions, for which some projects are working on. His statements did offer a degree of optimism, as he said that “everything has a right to exist.”

Putin continued saying,

“We will pay attention to the development trend of cryptocurrency, which may also become a means of savings at some point. We have seen how the market fluctuates, and it is still early.”

Putin’s opinion is in line with the likes of SEC Chair Gary Gensler, who said that there may be no long-term viability for cryptocurrencies for most, though not all, of the market. However, the SEC is working hard to regulate the market, especially to ensure that cryptocurrencies meet securities laws standards.

Russia has largely taken an ambivalent stance on crypto. Reports in 2020 indicated that the government would ban the asset class, but more recent reports suggest that regulation may be coming into place. Officials have confirmed that it would not make bitcoin legal tender, while it simultaneously develops tools to monitor criminal activity related to crypto.

Russian Finance Minister confirms no crypto ban

Russia’s Deputy Finance Minister Alexey Moiseev clarified that cryptocurrencies would not be banned, and the country had no intention to ban them like in China. This should bring a sigh of relief to the country’s investors as well as on a more global level, as cryptocurrencies are fairly popular in Russia. The nation’s central bank also announced an upcoming trial for a digital ruble.

China made headlines in September 2021 for yet again banning cryptocurrencies. The market briefly took a hit, though things have since recovered while investors joked that it was just a routine process for the country.

Other countries also seem to be shying away from banning crypto, instead opting to regulate it appropriately so as to leverage its benefits. India is among these countries, which has a highly enthusiastic, young population eager to invest in cryptocurrencies.

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Rahul's cryptocurrency journey first began in 2014. With a postgraduate degree in finance, he was among the few that first recognized the sheer untapped potential of decentralized technologies. Since then, he has guided a number of startups to navigate the complex digital marketing and media outreach landscapes. His work has even influenced distinguished cryptocurrency exchanges and DeFi platforms worth millions of dollars.

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