The President admitted the possibility that the future belongs to digital assets, but urged to closely monitor the risks that they carry
Cryptocurrencies are not backed by anything, have colossal volatility and carry very high risks, Russian President Vladimir Putin said at the Russia Calling! VTB Capital forum. So Putin answered the question of what he thinks about cryptocurrencies as an alternative to currencies issued by central banks.
“I think you need to listen to those who talk about these big risks (associated with cryptocurrency – topplabs.org). Although, of course, in some countries, in some economies, cryptocurrencies are being used more and more widely. Maybe this is the future, but we need to closely monitor how this process will develop, ”the President noted.
He recalled that in some countries, cryptocurrencies are used, in others, such as, for example, in China, they are prohibited.
“As for Russia, we will act on the basis of the realities that are developing in our country. There should be some elements of regulation, but not those that would constrain economic activity, ”Putin explained.
At the end of September 2021, the People's Bank of China introduced a complete ban on crypto transactions. The use of digital assets in the country is tantamount to illegal financial activity. The services that crypto-exchanges provide to residents of the country also turned out to be outside the law.
At the same time, in El Salvador, bitcoin has legal tender status. On September 7, the corresponding law came into force in the country. On the same day, the authorities bought 550 bitcoins, on September 20, they purchased another 150 BTC, on October 28, 420 BTC.
In 2021, the law "On digital financial assets" came into force in Russia. It defines cryptocurrency and prohibits its use to pay for goods and services.