Russia embeds crypto into its financial strategy

Lawmakers in Russia are working on changing legislation to allow a national crypto exchange.

Russia is closer to making a complete 180 degree turn in its views on cryptocurrencies. The Russian central bank had always viewed crypto with a jaundiced eye, and appeared to have favoured a ban.

However, in December of last year a thawing in the frosty perspective of the Bank of Russia began to take place, perhaps after conversations with the Kremlin, and its Deputy Chairman announced that regulation, rather than a ban, had become the preferred option.

Things have continued to change since, no doubt in no small part due to the sanctions imposed on Russia by the West. It’s now reported that both the Ministry of Finance and the Central Bank of Russia now see eye to eye on crypto.

In an article on Coin Telegraph, Sergey Altuhov, a member of the Duma Committee of Economic Policy, was quoted as saying:

“It makes no sense to deny the existence of cryptocurrencies, the problem is they circulate in a large stream outside of state regulation. These are billions of tax rubles of lost tax revenues to the federal budget.“

Head of the same committee, Anatoly Aksakov, was quoted by Reuters in early October as he gave his thoughts on cryptocurrencies and a digital ruble:

“The topic of digital financial assets, the digital rouble and cryptocurrencies is currently intensifying in society, as Western countries are imposing sanctions and creating problems for bank transfers, including in international settlements”

He added:

“If we launch this, then other countries will begin to actively use it going forward, and America’s control over the global financial system will effectively end,”

Opinion

The Russian warming to cryptocurrencies is very likely not because of their ability to give freedom to its citizens, but because this freedom to transact will potentially give it a way of circumnavigating the sanctions put in place on its banking system.

It would seem rather contradictory that a system based on the ideals of freedom and sovereignty for the individual should be used by a dictatorship, but when freedom of payment is the issue, then any State or individual should be at liberty to use it.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.