Putin Turns Around, Says Bitcoin (BTC) Has Value

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So far, Russian authorities have shown a skeptical view of the use of Bitcoin and cryptocurrencies for investments. The country’s authorities have expressed a general fear that its volatility and lack of transparency are a friendly means for possible money laundering.

Related reading | Majority of Russians say they would rather buy cryptos than traditional assets

The question now arises as to whether Bitcoin and digital currencies could be considered to settle oil and power contracts as the Russian government moves away from the dollar and finds new ways to trade these commodities in different currencies. .

In a recent interview with CNBC posted on the Kremlins website, Putin broached the subject by explaining that it is too early to think about such a step, seeing that investments in Bitcoin and cryptocurrencies are risky and premature, but it also charts a course for future possibilities.

However, he shed light on Bitcoin and cryptocurrencies by expressing that they have value, and gave his opinion on their future development by saying that everything evolves, everything has a right to exist. We will see how it goes.

These clarifications, along with similar claims by Deputy Finance Minister Alexei Moisees, move Russia even further away from a total ban on digital coins. Moisees’ statements, posted on the Interfax website, showed no interest in following China’s steps.

Related reading | Russian law enforcement jails man for 3 years for stealing cryptocurrency mining equipment

Many countries, such as the United States, are reconsidering their take on cryptocurrency and hopes are growing for new regulations. While China’s ban had put considerable weight on the market, new policies from other countries may continue to open up new possibilities.

Why Russia has changed its mind on Bitcoin

The numbers make it harder to deny the gain of digital currencies. While the head of the State Duma committee, Aksakov, shared the view of cryptocurrency instability, he also accepted the profit opportunities it offers in an interview posted on Interfax.

Putin also pointed to the increase in inflation in the United States, considering that the world’s largest economy appears to be in danger. As the dollar ground trembles, digital currencies are gaining ground.

He also claimed that US officials are using their currency as a means of control, creating a backlash for them as other countries fear landing on the wrong side of their measures.

Russia’s law on digital financial assets that came into effect last January has not been the most tolerant or severe. As digital currencies continue to evolve alongside Russia’s economic needs and interests, their restrictions may be reconsidered.

Although the use of Bitcoin and cryptocurrencies is illegal to pay for goods and services, civilians are allowed to invest in them. In other words, the Russian government does not conceive of using digital coins as currency, but it is possible to exchange them for rubles.

The effect of Bitcoin and crypto on the economy has become undeniable. As said law describes cryptocurrencies as a digital code or designation that can be used by owners as a means of payment.

Related reading | Here’s why the Russian crypto industry is trying to lure Bitcoin miners

The crypto market cap is near its all-time high with a valuation of $ 2.4 trillion, at the time of publication.

Crypto Total Market Cap close to historic high. Source: Tradingview

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