Sunday, January 29

Putin Says Russia Has ‘Competitive Advantage’ in Bitcoin Mining | Bitcoin Portal

The controversial president of Russia, Vladimir Putin, has finally spoken out about the possible ban on cryptocurrencies proposed by the country’s Central Bank.

In a video conference on Wednesday (26), Putin appears to have sided with the crypto sector, defending his country’s potential to exploit the booming mining market, according to the newspaper. Knowledge.

“Of course, we also have some competitive advantages here, especially in so-called mining. I am referring to the surplus of electricity and the well-trained personnel available in the country,” he said.

He stated that he was aware of the discussions that have taken place since last Thursday (20), when the Central Bank of Russia recommended a total ban on cryptocurrencies in the country, including the issuance, trading and mining of crypto assets.

In his speech today, Putin explained that the country’s monetary authority acts independently, but pressed for the Central Bank and the authorities of his government to reach a common decision on the regulation of cryptocurrencies.

He acknowledged part of the regulators’ discourse that the crypto market involves certain risks, notably the impact that volatility can have on the financial well-being of citizens, but instructed agencies not to ignore the advantages that the country has in the sector.

Putin had already given a positive nod to the market in October last year, when he said that cryptocurrencies have value, but he was wary at the time about their use in the oil trade.

Russia’s War on Cryptocurrencies

The Central Bank of Russia signaled last week that it intends to institute a total ban on any activity related to cryptocurrencies.

The director of the Financial Stability Department of the Bank of Russia, Elizaveta Danilova, criticized in a report the volatility of currencies such as Bitcoin and declared that they are used in criminal activities most of the time.

She also complained about the ease of moving cryptocurrencies anywhere in the world as it makes it difficult for the State to implement its monetary policies. In his view, the solution would be to ban P2P brokers and platforms from operating in the country.

Although Russia is currently the world’s third-largest player in bitcoin mining, behind only the United States and Kazakhstan, the country’s central bank has never been one of the friendliest of the market.

In 2020, Russia passed a law that legally recognizes cryptocurrencies like Bitcoin, but prohibits them from being used to pay for goods and services.

In July last year, the Russian government revealed that it was drafting a law to allow regulators to confiscate bitcoin and other cryptocurrencies that have become sources of income from crime.