Last week the Central Bank of Russia announced that it bitcoin (BTC) in cryptocurrencies wants to ban. Vladimir Putin, president of Russia, however, disagrees and speaks out against the decision of the Central Bank. Putin points to, among other things, the lead that Russia has with bitcoin mining.
The Russian Central Bank released a report last week concluding that bitcoin should be banned in Russia. The high volatility and the presence of cryptocurrencies in the illegal circuit are the main reasons. President Putin does not fully agree with this, however, he admitted a video conference know. He acknowledges the risks that bitcoin poses. He says that the volatility can be dangerous for Russian citizens. Yet Putin also sees the benefits of cryptocurrencies. He therefore asks the Central Bank not to just neglect the advantages that Russia has.
“We also have certain competitive advantages here, especially in so-called crypto mining. I mean the surplus of electricity and the well-trained teams that are present in the country.”
Russia is the country with the highest bitcoin hash rate after the United States and Kazakhstan. However, Kazakhstan is experiencing unrest and energy shortages, which means that other countries see opportunities. Russia may also be able to overtake the neighboring country in the long run, provided there is no bitcoin ban.
Incidentally, Vladimir Putin is not alone in speaking out against a complete crypto ban. Ivan Chebeskov, representative of the Russian Ministry of Finance, has already argued for bitcoin regulation. Chebeskov says that high-tech technologies, such as crypto, should not leave the country, but should be further developed. For that reason, the Ministry of Finance will soon come up with a new bill regarding crypto. Moreover, he indicated that the Central Bank is not the party that can decide what can and cannot be banned.