Russian President Vladimir Putin Remarks the Importance of Blockchain

Speaking during the annual live session with the Russian public, the President of Russia Vladimir Putin touched upon the issues related to digital assets and blockchain technologies. While his comments were rather evasive and ambiguous, the position of the Russian leader boils down to a simple formula: “crypto as a currency is bad, blockchain is good”, which is mostly similar to the approach of the majority of countries.

Putin said Russia cannot have a cryptocurrency since they “by definition” aren’t within the control of a state and are “beyond national borders”, he explained. While that explanation may fall short in the context of a central bank digital currency (CBDC), Putin admitted the “phenomenon” of cryptocurrencies is growing globally.

Cryptocurrencies as payment instruments have been adopted in Japan but “it doesn’t work in other countries” Putin said, highlighting the views of Russia’s own central bank on the subject.

Putin said:

“In most countries, cryptocurrency is not a means of settlement. The Central Bank of the Russian Federation believes that cryptocurrencies cannot be a means of payment, settlement or store of value. These currencies are not secured by anything.”

And Russia treads carefully indeed. The Russian parliament – the State Duma – has discussed three bills about blockchain and digital assets with two of them passed the first round of hearings out of three in May.

The two bills intend to acquaint fundamental blockchain wording with the Russian legitimate dialect, for example, tokens and blockchain. They additionally confine getting the money for out of tokens to approved fund foundations and dole out the Bank of Russia as a controller that should control the crypto exchange and ICOs in the nation.

Notably, the head of the stated evasively hinted at a possibility to use cryptocurrencies to escape financial limitations. While his working was very careful, this may be interpreted as a reference to Western sanctions imposed on the country. It is also worth noting that Russia is exploring blockchain opportunities to reduce its SWIFT dependance.

Michael Komin, a specialist for the organizations advancement with the Center for Strategic Development – a Moscow think tank led by Alexei Kudrin, a previous leader of the Department of Finance and one of the defenders of blockchain innovation in Russian establishment– – trusts that the bills are “half-vacant” on the grounds that a sufficient legitimate dialect for blockchain hasn’t been made up until this point. Komin said,

“The main thing the parliament can do is to boycott the innovation all things considered, however it won’t be affirmed by the Bank of Russia, Department of Finance and Treasury, which are as of now utilizing components of blockchain, and by the President Putin’s consultant Andrei Belousov, ”

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