Russian President Vladimir Putin discusses crypto

During a national public address, Russian President Vladimir Putin has described cryptocurrency as a “phenomenon.”

Mr. Putin reveals that crypto is something Russia is looking at to determine ways it can “participating in the process.”

Putin made the comments during his annual national live TV Q&A session with the citizens of Russia on June 7.

The live session is often referred to as the “Direct Line” with the president.

Artem Khokholikov, a Russian blogger, asked President Putin three questions about cryptocurrencies:

  1. “Will Russia have its own cryptocurrency? […]
  2. “Will it be controlled by the government? […]
  3. “Do you think that in the near future cryptocurrency will completely replace our regular, standard money?”

Putin answered the first question by explaining that Russia can’t have its own cryptocurrency, as “by definition,” cryptocurrency can’t be “owned” by a centralized state because it “goes beyond borders.”

Mr. Putin then discussed “so-called mining,” explaining that Russia isn’t regulating the practice but does “treat it very carefully.”

The Russian President noted that Japan has partially adopted cryptocurrency as a payment method.

However, he added that “it doesn’t work in other countries” as a currency, saying:

“The relationship of the Central Bank of the Russian Federation to cryptocurrency [is that] it considers cryptocurrency neither a means of payment nor a store of value.

“Cryptocurrency is not backed by anything.

“One should treat it cautiously, carefully.”

A phenomenon

The president asserted that Russia sees cryptocurrency as a “phenomenon developing in the world.”

A phenomenon

The president asserted that Russia sees cryptocurrency as a “phenomenon developing in the world.”

He added that the Russian Government is looking for ways that Russia can “participate in the process.”

The Russian leader also stated that Russia is looking at “how we can use it [cryptocurrency] in order to avoid any restrictions in the field of international financial activity.”

The annual live TV event was Putin’s 16th questions and answers session.

The president’s questions are widely known to be curated beforehand as to address particular subjects related to Russia’s domestic and foreign policies

With cryptocurrency being brought up during this year’s event, it surely signals that Russia sees crypto as playing an important role in the country’s future.