After Russia Central Bank¡¯s Proposal To Ban Crypto, President Vladimir Putin Offers A Glimmer Of Hope

Last week, it seemed to be the end of the road for the crypto industry¡¯s future in Russia, when its Central Bank proposed to ban cryptocurrency investment and mining.

But now, a ray of hope has suddenly arrived for this country whose citizens¡¯ transactions using decentralized cryptocurrencies amount to a whopping $5 billion per year (as per Central Bank¡¯s estimates).

Just a couple of days back, Russia¡¯s President Vladimir Putin spoke during a video conference with government ministers, which involved a discussion on the crypto industry as well.

What President Putin Said

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Russia¡¯s President Vladimir Putin said "The central bank has its own position. It is connected with the fact that the expansion of this type of activity carries certain risks, and first of all for the citizens of the country, given the high volatility and some other components of this topic. This should, however, be offset against "certain competitive advantages" that Russia holds when it comes to mining, due to the country's surplus of electricity and well-trained personnel.¡¯

This statement certainly seems to offer much-needed hope for the future of the crypto industry in Russia.

Also, President Putin called on the country¡¯s central bank to meet with his government in the near future to reach a consensus on the use of crypto.

Even the country¡¯s Finance Ministry has opposed the Central Bank¡¯s proposal to ban crypto, stating that the ban would undermine the industry's technological development.

Also Read: From Working At McDonald's To Becoming A Crypto Pioneer: Meet World's Richest Crypto Billionaire

Why The Central Bank Has Been Pushing For Ban?

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Citing threats to the monetary stability of their nation, the Central Bank had last week stated that ¡®speculative demand¡¯ is driving the rapid growth of decentralized cryptocurrencies, and it risks the creation of a bubble in the market. And cryptocurrencies also have signs of a financial pyramid as the increase in their prices is largely driven by demand demonstrated by new market participants.

In its consultation paper proposing the crypto ban, the Central Bank mentioned that it seeks to ban financial institutions from investing in or carrying out any operations with cryptocurrencies. Russia¡¯s Central Bank also seeks to ban cryptocurrency exchanges and any platforms that facilitate the circulation of cryptocurrencies.

But with this latest statement by President Putin, crypto enthusiasts of Russia can breathe a sigh of relief. The future of crypto now looks less bleak than what it was since last week¡¯s proposal of the Central Bank to ban it.

Also Read: 2 More Countries Will Legalize Bitcoin In 2022, President Of World's First Country To Do So Predicts

Other Crypto Opposing Countries

Many countries around the world, including China, have repeatedly voiced their concerns when it comes to the crypto industry.

Some nations have already announced a blanket ban on crypto, whereas some have either partially put restrictions, are contemplating to put restrictions, or are still in two minds regarding what course of action to take.

As far as India¡¯s Crypto Industry is concerned, the lack of clarity from both the government and the central bank RBI¡¯s side implies that the future remains cloudy. All hopes are pinned from the much anticipated and awaited Cryptocurrency and Regulation of Official Digital Currency Bill, 2021. A lot of hype has already built up surrounding the bill, which would hopefully clarify whether the cryptocurrency will be banned or regulated in India.

Also Read: RBI Creates New Fintech Department, May Take Up Crypto Issues

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