Equating crypto to monetary instruments “will only bring harm” Kremlin

[ad_1]

(Kitco News) There is no reason for a country to recognize crypto as legal tender, according to Kremlin spokesman Dmitry Peskov, who added that Russia is not ready for such a step.

“It is certain that Russia is not ready for such measures. So far there is not the slightest reason to [recognize cryptocurrencies]”Peskov told reporters this week.

Peskov warned that recognizing crypto as the official currency would only hurt the economy. “De facto, assimilating [cryptocurrencies] with monetary instruments will only bring damage to the financial and economic system, if we are talking about full recognition as a means of payment, “he said.

The comments came as El Salvador became the first country to adopt bitcoin as legal tender. Tuesday’s historic move, however, sparked an unexpected selloff, with bitcoin dropping $ 10,000 in less than 24 hours.

Peter Schiff, prominent gold bull and chief market strategist at Euro Pacific Asset Management, was one of the critics of El Salvador, tweeting on Tuesday: “Your national ‘currency’ just lost more than 15% of its purchasing power in less than an hour. Get used to it. “

The decision to recognize crypto as legal tender will not end with El Salvador. In August, the Cuban government said the country’s central bank would put in place rules to recognize and regulate cryptocurrency payments.

As for Russia, the country’s central bank governor Elvira Nabiullina has advised against investing in cryptocurrencies. Russia has also introduced regulations prohibiting public officials from owning crypto.

In June, Nabiullina said cryptocurrencies are “a great risk of money laundering” because the crypto world is anonymous and not transparent. “There are aspects related to transparency. This is why we have banned our financial institutions from working with cryptocurrencies.”

However, bitcoin is gaining popularity in Russia. The latest survey by the Russian Association of Currency Brokers (AFD) shows that nearly 77% of Russian investors surveyed identified bitcoin and other cryptocurrencies as the “most forward-looking” investment. AFD interviewed 502 investors between August 4 and 24.

In the spring, the People’s Bank of China (PBOC) issued a stern warning about Bitcoin. According to the official WeChat account of the PBOCs, cryptocurrencies should not be used in financial markets or in the real economy because they are not real currencies.

In June, China announced a new e-RMB, a digital yuan backed by the government and stored in a digital wallet instead of a bank account. One reason for this new push for digital currency could be a chance for the government to oversee mobile app purchases, which account for around 16% of China’s GDP, Bloomberg reported. The Chinese government also does not want the monopolization of digital currencies by the tech giants.

Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a solicitation to trade in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.

[ad_2]