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- Legalising cryptocurrency will bring no benefit to the country
- Equating bitcoin to official monetary will harm Russia’s economic system
- Russia has a long way from accepting cryptocurrency
- The digital ruble is on the way
Making cryptocurrency legal in the country is definitely not on the mind of Russia as of now. The country does not have any reason to recognize bitcoin, it was confirmed by President Putin’s press secretary recently.
Russia’s stance on cryptocurrency came at a time after El Salvador became the first country to adopt the digital coin as legal tender. However, in a statement to the press, Dmitry Preskov, Press Secretary to President Vladimir Putin, said that he is sure that such a move will bring no benefit to the country.
He sees it as a quasi currency. He feels that equating bitcoin to official monetary instruments would not do anything but harm Russia’s financial and economic system. He emphasised that the country is not ready for this step.
According to the news report in the local news of the country, El Salvador became the world’s first country to recognize bitcoin as legal tender for payments in its jurisdiction. El Salvador’s Bitcoin law came into effect on September 7, 2021, making the leading crypto by market cap a national currency along with the US dollar.
Hence, the residents of the small Central American nation are free to pay for goods and services using cryptocurrency. Taxpayers can also use bitcoin to pay their taxes in the country. Recently, the government of El Salvador has started purchasing BTC. President Nayib Bukele acquired 200 coins, bringing the total counting to 400 bitcoins. Later the country took the advantage of the falling price of the coin and purchased another 150 tokens when the price fell below $43,000.
A long way from acceptance
Whereas Russia has a long way from accepting cryptocurrency as legal tender. Moscow partially regulated coins and tokens with the new law ‘On Digital Financial Assets’ which was launched at the beginning of 2021. Its provisions recognize cryptocurrencies as property but prohibit their use for payments.
The national fiat ruble is the only legal currency in the country as of now. Money surrogates are banned in Russia. The country’s Central Bank, Bank of Russia is all set to launch a digital ruble prototype by the end of 2021. The bank opposes using decentralized digital money.
However, in May members of the State Duma, the lower house of parliament in Russia has proposed the usage of crypto assets as contractual means of payment. The members had started working on amendments to the Civil Code that would permit the use of cryptocurrency.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
