Recently, a report indicated that Russia intended to invest billions of dollars in Bitcoin to cushion itself against the effects of U.S sanctions. As we reported, the report cited a senior Russian economist and a lecturer at a national economics institution. However, a Russian government official says that this is very unlikely.
The official, who works with the crypto regulation department, revealed the great challenges that hinder crypto adoption in the country. One of these is lack of regulatory clarity. The Russian government is yet to take a stand on the use of cryptos and the ambiguity is hurting the industry.
However, in what is an encouraging nod to the industry, the Russia Prime Minister believes that cryptos have a future. In his address in Russia’s biggest business event, Dmitry Medvedev acknowledged cryptos’ volatility, but he believes they’ll bounce back.
The Russian Equation
The crypto world had received the news that Russia was looking at Bitcoin with great hope and enthusiasm. Russia has a lot of influence in the global economy. The Russian president, Vladimir Putin has also in recent times struck a close partnership with his Chinese counterpart. Combined, the two nations can make Bitcoin an accepted global standard.
However, this might just be wishful thinking. According to Elina Sidorenko, Russia is at least three decades away from turning to Bitcoin. Sidorenko is the chairperson of the interdepartmental working group that has been tasked with managing the crypto industry in Russia.
Speaking to Forklog, a Russian crypto media outlet, she explained:
Under this statement there is not a bit of common sense, much less ideas that would be considered in government circles. The Russian Federation, like any other country in the world, is simply not ready today to somehow combine its traditional financial system with cryptocurrencies. And to say that in Russia this idea can be implemented in the next at least 30 years is unlikely to be possible.
Sidorenko reportedly referred to earlier assertions of Russia buying Bitcoin as absurd. She cited lack of legislation on Bitcoin as the biggest impediment.
Even if Russia wants to place its cryptocurrency assets now, it simply cannot do this, due to the fact that we do not have any mechanisms that would allow us to introduce a system, where these assets would be stored, which authorities would be responsible for it, which would be responsible for abuses and stuff. Such a model under the current criminal, financial and civil legislation, in general, does not fit
There’s Still Hope
According to Sidorenko, cryptos are considered high risk the world over. With his in mind, integrating cryptos with the current financial system would ‘not suit anyone.‘
The only way to implement digital currencies in Russia would be through the creation of an ‘interstate cryptocurrency.’ This would provide a unified and globally accepted system of payments between different countries.
Dmitry Medvedev, the Russian Prime Minister, believes that it’s still too early to call off cryptos. In his address at the 10th Gaidar Forum, he cited cryptos as a field that Russia will need to keep an eye on.
Medvedev, who is the head of the cabinet, stated:
But this, of course, is not a reason to bury them. Here … there are both light sides and dark sides, as in any social phenomenon, in any economic institute. And we should just watch closely what happens to them