Despite increased scrutiny from regulators around the world, Russian President Vladimir Putin has shown a willingness to accept cryptocurrency as a legitimate form of payment.
During an interview with CNBC that aired on Thursday and was made public by the Kremlin’s website, Putin remarked that:
“To transfer money to some other place maybe, but it’s too early to talk about the trade of anything in sources of crypto. Cryptocurrencies are not supported by anything, yet. It may exist as a means of payment.”
Amid the speculation over adopting digital currencies for oil and other commodities trade, he stressed that it was still too early to draw any firm conclusions.
Since the annexation of Crimea in 2014, when the United States imposed sanctions in response, Russia has looked for alternatives to trading in dollars, and President Putin accuses the United States of using its currency as a weapon.
Decentralized money, according to proponents of cryptocurrencies, would eventually supplant fiat currencies issued by governments and central banks.
According to the Russian Central Bank, the crypto market is extremely volatile, and digital currencies cannot be utilized as a payment mechanism within the country due to these risks.
Interfax reports that Deputy Finance Minister Alexei Moiseev stated this week there are no intentions for a blanket ban like China has.
President Joe Biden’s administration is contemplating starting a wide initiative to examine and harmonize crypto policy, which might lead to new rules. The White House is considering doing the same.
China has been cracking down on the cryptocurrency business this year, and the country prohibited all crypto transactions in September.