Vladimir Putin Says Cryptocurrencies Can Become Legitimate Payment Currency

Vladimir Putin, the President of Russia seems to be in favor of cryptocurrencies and their use in the payment sector. In a recent interview with CNBC, Putin said crypto-assets  “has the right to exist and can be used as a means of payment,” Russian President’s pro-crypto stance came as a surprise to many given Russian central bank has issued several warnings for crypto traders, reminding them of high risks that come with a crypto trading.

Putin’s comment on seeing crypto as a potential payment tool comes at a time when the US and several other European nations are considering strict regulations on the crypto market. Russian President also noted that the technology is relatively new and thus unstable, but with time it can grow to become a legitimate tool for payments. He explained,

“The cryptocurrency is not backed by anything yet. It exists and as a means of calculation can be used, of course, yes, but trading in oil, say, or other primary materials and energy sources – still, it seems to me, it’s too early to talk about this for now.”

“But everything develops, everything has the right to exist. We will see how it will go further, maybe someday it may also be a means of accumulation. We see this market fluctuate. It’s a bit early today.”

Can Russia Take a Different Route Than the US

Putin’s comments on the cryptocurrency market reflect that Russia has not dismissed crypto assets altogether. Russia is also facing sanctions from the US since 2014, and the growing popularity of digital assets could help the nation overcome trade sanctions, just like Iran tried doing it using Bitcoin.

The US on the other hand has assured they have no plans of banning crypt altogether like China, but the strict policies and regulatory crackdown threatened by SEC could surely act as a barrier to the growth of the crypto market.

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