Putin Signals Possible Russian Crypto Adoption

Vladimir Putin recently held a press event.

During the event he discussed everything from energy and geopolitics, to the prospective use of cryptocurrencies as a settlement mechanism in Russia.

He said that it was still too early to make a definitive decision on crypto as the tech is still very early in its lifecycle—citing the extreme volatility of cryptocurrencies and digital assets as one of the reasons for holding off right now.

Putin also noted that while cryptocurrencies may one day see themselves used as a viable settlement mechanism, he does not believe them to be a viable settlement mechanism for the sale of oil.

You can watch the full event below:

Putin's full press event detailing everything from energy to cryptocurrencies. https://t.co/3d3dxo0DD3#Putin #Russia #Crypto

— Vince Quill (@VinceQuill) October 14, 2021

It may be too early to use crypto for trading oil, but the Kremlin is not dismissive.

Russian President Vladimir Putin said that private cryptocurrencies “can act as a unit of account,” but they are “very unstable.” https://t.co/0WikIt4rYb

(Reporting via @coindanslecoin)

— Cointelegraph (@Cointelegraph) October 14, 2021

Bein Crypto comments:

Putin’s opinion is in line with the likes of SEC Chair Gary Gensler, who said that there may be no long-term viability for cryptocurrencies for most, though not all, of the market. However, the SEC is working hard to regulate the market, especially to ensure that cryptocurrencies meet securities laws standards.

Russia has largely taken an ambivalent stance on crypto. Reports in 2020 indicated that the government would ban the asset class, but more recent reports suggest that regulation may be coming into place.

 

SEC acknowledges it, Putin acknowledged it, small countries adopting it, China tried to kill it still chugging along- crypto is about to be fun regardless of size of holding for those that jumped in.

— sampcoates (@sampcoates) October 14, 2021

🇷🇺 #Putin says #crypto has a right to exist, and is a legitimate way of making payments.

🇺🇲 Meanwhile, Jurassic Joe #Biden the luddite, is launching an initiative to regulate cryptocurrencies the same way #China is. 🙃 pic.twitter.com/p19jCNGcRo

— Terror Alarm (@terror_alarm) October 14, 2021

Crypto Potato summarized Putin’s stance:

While Putin acknowledged the potential of cryptocurrencies in the payments sector, the Russian president noted that due to the extremely volatile nature of the asset class, it is “still too early” to definitely say that they would replace the US dollar when settling oil trades, for example.

“It’s too early to talk about this, because cryptocurrency, of course, can be a unit of account, but it is very unstable. In order to transfer funds from one place to another – yes, but to trade, let alone trade in energy resources, in my opinion, is still premature,” he said.

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