Friday, January 28

Vladimir Putin criticizes cryptocurrencies, “the stakes are high”

Vladimir Putin, president of Russia, once again criticized cryptocurrencies on Tuesday (30), according to him, in addition to cryptocurrencies not being backed, they also have high volatility, which creates risks.

Russians are currently witnessing an arm wrestling between parliamentarians and the Central Bank of Russia. While the first party wants to regulate the sector in order to be able to collect taxes, the BC continues to say that cryptocurrencies are not currencies.

In addition, Putin also spoke about Russia’s presidential election in 2024, saying he has not yet decided whether to run. Among other statements is Putin’s concern about the health of the population due to Covid-19 and its new mutation.

The risks are high

In October, Vladimir Putin stated that cryptocurrencies have no value, despite that he declared, in this same interview, that they have the right to exist, and that they could become a store of value in the future.

As for the statements this Tuesday (30), taken from the site, Putin again pointed out that they still have a great risk as they have no backing and their volatility is still high.

“As for cryptocurrency, it is prohibited in some countries. It’s not backed by anything, volatility is high, risks are high. I also believe we need to hear whoever talks about high risks.”

The fact is that more and more people are choosing to risk losing money in the short term, due to volatility, than relying on state currencies whose future is the constant loss of purchasing power. Despite this, some economists are concerned with so much volatility after more than 10 years of Bitcoin, after all this is still an obstacle for us to use the BTC as a currency on a daily basis.

Bitcoin volatility is mainly caused by the fact that it has no leverage to try to keep its price stable. It is a free and open market, traded 24 hours a day, 7 days a week by people and institutions located all over the world. In other words, it is a natural consequence and it is not all bad.

Putin has yet to decide whether to run for president

Vladimir Putin, who has been in charge of Russia uninterruptedly since 2000, also stated this Tuesday (30) that he has not yet decided whether he will run again for president of Russia, elections are scheduled for 2024.

Despite having commented on cryptocurrencies, the current focus of the Russian president seems to be different. The new mutation of Covid-19 is the current Russian agenda, the country that is also developing vaccines needs to prepare for a possible new wave of contagion.