The economic sanctions imposed on Russia by Western countries forced the world’s largest country to rethink. In order to protect one’s own economy, drastic measures must be taken. It quickly became apparent that private individuals were investing in cryptocurrencies to protect themselves against losses.
The Russian state now wants to follow this example. Prime Minister Mikhail Mishustin even calls for the integration of Bitcoin into the Russian economy.
Russia is set to integrate crypto into the economy
Mikhail Mishustin, Prime Minister of Russia, called for the integration of digital assets into the Russian economy in a speech to the Federal Assembly on March 25.
The main reason for the demand is the severe damage that the Russian economy has suffered from Western sanctions. Many payment networks like SWIFT, Visa and Mastercard exclude Russian participants from international payments.
Russia is attempting to circumvent these blocks by implementing alternative networks, using China’s UnionPay . Apart from the fact that the same censorship would potentially be possible there as well, Mishustin calls for the use of cryptocurrencies in order to become more accessible, especially internationally.
Prime Minister Mikhail Mishustin urged to integrate digital currencies into the Russian economy.
"It is necessary to integrate the mechanism of digital currencies turnover into the country's financial system."
Good for #Bitcoin
— Pashka (@btcPashka) March 26, 2022
he Central Bank of Russia to assess the risks of cryptocurrencies
Although Mishustin reportedly did not provide a detailed explanation, his call sounds strongly about using cryptocurrencies as a means of payment. A future mass adoption of cryptocurrencies in Russia would therefore be conceivable.
In order to avoid risks from such measures, however, he calls for a professional assessment by the Russian central bank.
Undoubtedly, such issues can only be clarified together with the Central Bank to assess the risks that cryptocurrencies pose to the circulation of money in Russia.
In addition, Russia should take further steps to achieve the regulation of crypto mining in Russia and thus make the country an attractive location for Bitcoin farms. After growing criticism in Kazakhstan, many mining companies are again looking for a new home. Some of them have already shipped their systems to the USA.
This demand refers to a statement made by Putin in January. At the time, the president said Russia could create an environment friendly to miners. The right conditions for mining prevail in the country.
Unfortunately, Mishustin is trying to falsify the very idea of cryptocurrencies. All transactions are to be processed through the Russian central bank. Cryptocurrency holders should be identified and investors divided into qualified and unqualified persons.
The Russian central bank is even more hostile to cryptos and only in September initiated a new law banning cryptocurrencies.
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