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Putin Says Russia Should Explore Blockchain To Avoid Finance ‘Limitations

Putin Says Russia Should Explore Blockchain

During an annual “hotline” conducted on Thursday, the president of Russia Vladimir Putin said that his government has been maintaining a cautious stand against cryptocurrencies.

When he was asked if Russia will create its own cryptocurrency Putin replied that he could not see something like that happening as cryptocurrencies “by definition are beyond the national borders.”

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However, in spite of this warning, he ascertained that cryptocurrencies have seemed to develop all around the world and he hopes that Russia would explore any such opportunities around this technology. Amongst its different advantages, he emphasizes that cryptocurrency could be useful to avoid limitations in finance trade. This means that by using blockchain he hoped that in the recent years all the sanctions imposed on Russian banks, individuals etc. could be eased.

During the four hour session, Putin also said that cryptocurrency mining is not a regulatory process and therefore it is difficult to recognize them as legal currency especially within Russia.

Last year the Russian President had provided a set of guidelines to Russian officials asking them to regulate the cryptocurrencies.

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In continuation Putin said; “Somewhere in Japan they are using it, but it doesn’t work in other countries”
Russia’s legislature has been regulating and understanding the impact of technology and Putin’s comments come in accordance to that.

Till date, the Russian Parliament has seen filing of three bills related to Blockchain. Amongst these two bills i.e. “On the digital financial assets” and “On the digital rights” passed the first round of clearing on May 22. For the bills to pass three rounds of clearing are required.

Both the bills have been created to introduce Blockchain in layman terms like Tokens and blockchain. They are also planning to restrict the cashing of tokens to only authorized financial institutions and make the Bank of Russia as one authority to modulate the crypto trade in the country.

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The third bill which is on distributed national mining and introduces “crypto rubble” has been rejected.
Michael Komin, an expert for the institution’s development with the Centre for Strategic Development feels that bills are half empty as an appropriate language for blockchain has not been created.

 

According to Komin

“The only thing the parliament can do is to ban the technology as such, but it won’t be approved by the Bank of Russia, Department of Finance and Treasury, which are already using elements of the blockchain, and by the President Putin’s advisor Andrei Belousov, “

He believes that these current blockchain bills will also be left untouched by the authorities and finally would not see the light of the day.

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