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Oleg Deripaska, the multimillionaire and an industrial tycoon in Russia is very critical of the Bank of Russia’s move regarding cryptocurrencies. He tells the bank to embrace bitcoin in the country so that it benefits the nation economically.
Oleg Deripaska, the Russian industrial tycoon has criticized the Bank of Russia for not involving in cryptocurrencies and not taking any stance on the regulations regarding cryptocurrencies.
In the latest string of news, Deripaska on his official Telegram channel blasted the Russian Central Bank for pressuring the crypto industry not to get involved in cryptocurrencies like bitcoin.
He is of the view that Russia needs to adopt Bitcoin to provide a real financial instrument that will give independence in foreign trade settlements.
El Salvador embraces bitcoin
He also said that even a small country like El Salvador has given the legal status to Bitcoin and that Russia is still skeptical about the adoption. He further pressed that a poor country like El Salvador has realised the need for digital currencies and taken a simple path, recognizing bitcoin as a means of payment.
He further criticized the central bank for its non-committal response to the crypto industry development, particularly the bank’s statement regarding the digital ruble. He explained that banks should devise a mechanism to provide freedom in foreign trade settlement.
Deripaska- the influential one
Deripaska is one of the known names in the country and is a very wealthy name. He is the founder of the basic element, one of Russia’s largest industrial groups. Volnoe Delo is Russia’s largest charitable foundation.
Since April 2018, Deripaska companies have been sanctioned by the United States Department of Treasury, with some of the offices of Foreign Asset Control’s allegations of money laundering, bribery and extortion. He has though pleaded for sanction which has been failed.
Deripaska is another name who has joined the list of other critical people along with Russian state Duma member Fedot Tumuso, who was in the news for criticizing the bank for its short-sighted views on crypto.
El Salvador – a way forward
Deripaska believes that Russian authorities should follow the El Salvador model which has accepted bitcoin with open arms and further will be giving support to the entrepreneurs dealing in Bitcoin.
President Nayib Bukele from El Salvador in his Tweet has shared his opinion about bitcoin and has promised that he is trying to help the citizens and entrepreneurs who are travelling for work to the country and dealing in bitcoin. He is trying to make bitcoin income tax free.
President Nayib Bukele put his vision forward and said that he wants to help entrepreneurs embrace El Salvador as a base and make bitcoin free from capital gains tax. In many countries, any income incurred via bitcoin is taxable to a certain amount confirmed by the country. The percentage of the tax varies from country to country.
Latin America has been very receptive to bitcoin and making several moves to help the traders to evade taxes. Paraguay has been following the suit of El Salvador. The country is announcing many decisions via tweets for publicizing still unofficial government plans.
Crypto scenario in Russia
Though Russia has allowed crypto trading yet it did not allow local banks to offer crypto services. Tinkoff, a major private bank in Russia, is struggling to offer cryptocurrency to its clients because of the central bank’s tough stance on cryptocurrencies.
Oliver Hughes, CEO, Tinkoff said that digital bank is willing to offer crypto trading services but is restricted by the Bank of Russia’s policy. Hughes said that the demand to invest in cryptocurrencies is increasing. But he said that still there are certain concerns like money laundering, frauds, and high volatility risks. But he is hopeful that with time these concerns will also be taken care of.
Tinkoff is one of the most popular banks in Russia; it is positioned on the third level in the country after Sberbank and VTB.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
