Former Russian president and current Security Council vice-president Dmitry Medvedev did not like the idea of applying a ban on cryptocurrencies in Russia.
This was reported by the Russian channel RBC.
Medvedev against the ban on cryptocurrencies in Russia
During a press conference, the former president answered journalists’ questions about the Central Bank’s desire to ban trading, exchange and circulation of cryptocurrencies.
Medvedev took a mediating stance arguing that the Central Bank of Russia has its reasons, but often a ban leads to the opposite result.
Specifically, he said:
“To put it bluntly, when they try to ban something, it very often leads to the opposite result. But the central bank’s position has obviously its own reasons, which are also known to everyone”.
The political debate on cryptocurrencies in Russia
The former president’s position adds up to a now heated political debate that sees on one side the Central Bank, strongly determined to ban cryptocurrencies, and on the other side President Putin himself who, while declaring that the competence lies with the BCR, does not seem to want to go down the road of banning crypto.
The choice will be of the Duma, the Russian Parliament, called to mediate with the Central Bank and to find a position that can be translated into a regulatory proposal.
The idea of the Central Bank, always according to what was reported by RBC, would be to prohibit the use of Russian infrastructures (probably a reference to internet connections), for cryptocurrency operations. At first, it was actually hypothesized to allow trading only to experienced traders, but then the institution has retraced its steps because it fears that it will create a parallel financial system that can escape the rules.
The Russian Parliament in the spring will begin work on a regulation on the matter.
In the meantime, Russia and President Putin seem to be eyeballing Bitcoin mining, which the head of state says would be profitable. This is not the first time Putin has expressed appreciation for cryptocurrencies. He had previously said that they may have a future although they are very volatile at the moment.
Mining in Russia
Putin probably doesn’t want to ignore the fact that after China’s ban, Russia has become the third-largest Bitcoin hashrate country in the world, which indicates that miners have established their mining farms there. Bitcoin mining represents one of the many fronts on which the competition with the United States is staged.
Regulation will probably be the arbiter, as both superpowers have decided to intervene with laws on the subject but at the moment they are still at the discussion stage. When they will decide which direction to take, it will be clear if they want to go towards innovation or if they want to leave the field free to the adversary.
Source: https://en.cryptonomist.ch/2022/02/02/russia-ex-president-medvedev-ban-crypto/