Russian President claims cryptocurrency bear high risks

  • Cryptocurrency are not backed by anything, and the volatility of these assets are colossal, so there is high risk as per Vladimir Putin
  • Putin calls for more stringent monitoring and regulations of the crypto market
  • To establish their central bank digital currency, Russia will have to change at least eight federal laws and five legislative codes

Cryptocurrency ecosystem has garnered mainstream attraction globally with its tremendous gains. Recently, the Russian central bank has published its Financial Stability report. According to the report, each year Russian residents are making more than 350 billion russian rubles ($5 billion) worth digital currency transactions. Although the figure is not a risk to the nation’s financial stability, the growing interest for crypto could become a risk. On Tuesday, Russian President, Vladimir Putin, voiced his criticism at the Russian Calling investment forum in Moscow. According to reports from local news outlets, Putin claimed that digital currencies bear high risk.

Cryptocurrency requires greater regulation

As Russia’s cryptocurrency regulatory framework is still under development, president Vladimir Putin voiced criticism. According to Putin, digital assets are not backed by anything, and the volatility of these assets are colossal, so there is high risk. Additionally, he believes that the nation needs to listen to those who talk about those high risks. Following his statement, Putin called for more stringent monitoring and regulations of the crypto market. Furthermore, he pointed out that there are certain nations that seek significant adoption of crypto. 

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Where the crypto assets are not in the government’s infancy, they seek to establish their CBDC. However, to establish their central bank digital currency, Russia will have to change at least eight federal laws and five legislative codes.

Interest in crypto could risk financial stability

Binance, one of the leading crypto assets exchanges globally, has considered Russia as one of the biggest markets. Simultaneously, the number of Russian users are continuing to surge on other digital assets platforms. 

Russian financial regulators are concerned as the interest in cryptocurrency continues to surge. At the current point, the transactions and use of digital assets does not risk the financial stability of the nation. However, the nation is concerned if the residents began to shift their funds to stablecoins, those are pegged with the government-issued fiat currency. 

Russia needs crypto regulations

In the current scenario there are no regulations related to digital assets existing in Russia. Indeed, the cryptocurrency regulatory framework is still underdevelopment. Simultaneously, the nation also has no regulations related to the crypto mining operations. Following the fact, some of the firms claim that digital assets miners are making $2 billion in revenue annually. Indeed, such miners don’t have to pay any tax on such operations.

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Ahtesham Anishttp://www.thecoinrepublic.com
Ahtesham Anis is a Computer Science undergrad student currently based out of India. Coming from the business background and his keen interest in Cryptocurrency and Blockchain technology is what Ahtesham brings to the table. He is always an eager learner when it comes to exploring the new technologies and topics in the crypto world.

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