Russia Is Not Issuing Its Own Cryptocurrency

On June 7, President of Russia, Vladimir Putin elucidated on the question of Russia issuing its own cryptocurrency. Although his thoughts on the matter culminated in a very equivocal stance on the matter. However, his thoughts on Russia coining its own cryptocurrency are not positive. In the ‘Direct Line’ session with the president today, Russian blogger Artel Khokholikov asked the president a set of questions pertaining to Russia’s plans on the usage of cryptocurrencies. 

This was a live question and answer session with the Russian president held on June 7. To answer Artel’s questions, Putin began by denoting how it is impossible for Russia to have its own cryptocurrency since crypto cannot belong to a decentralised state or system, as it belongs on the world wide web and “goes beyond borders”. Putin then expressed Russia’s stand with respect to ‘mining’. He said that Russia does not regulate the practice of crypto-mining, even so, it is very careful about the process. the possible use of crypto for doing away with Western sanctions, lingering in the above quote. Meanwhile, Putin also denoted how Russia must watch out for crypto as a “phenomenon developing in the world” in order for it to figure out ways in which it can “participate in the process”.

On the subject of usage of cryptocurrency as a mode of monetary payments and transactions, the president said that experts believe Japan may have adopted crypto as a mode of transactions, however “it doesn’t work in other countries”. Further, Putin also commented on Russia’s plans of exploring the possibilities of crypto being a remedy for international economics, and “how we can use it [cryptocurrency] in order to avoid any restrictions in the field of international financial activity”. Clearly, there was a very obvious reference to the possible use of crypto for doing away with Western sanctions, lingering in the above quote. 

This was the president’s 16th appearance in the annual event, hosted every year where the Russian public of asks the president questions on live television. The questions raised in the programme are curated with respect to domestic and foreign policies. The program paves way for hopes of a more detailed address of the topic in the times to come.