- The Kremlin has stated in unequivocal terms that it isn’t ready to accept Bitcoin as legal tender.
- A spokesman for the government, Dmitry Peskov noted that “pseudo currencies can cause harm” to the financial system.
- Russia has endured a rocky relationship with cryptocurrencies, formerly barring public officials from owning them.
Europe’s largest country, Russia has laid bare its intention to not follow El Salvador in recognizing bitcoin as legal tender in the country. The country believes that bitcoin and other cryptocurrencies pose a great threat to economic stability and the government is not ready to take such a decision.
Russia Looks The Other Way Concerning Bitcoin Adoption
After El Salvador adopted Bitcoin as legal tender on September 7th, the air was rife with speculation over the next country that will be joining the ranks. Presidential Press Secretary, Dmitry Peskov stated that Russia has no plans and no reasons to adopt Bitcoin as legal tender. The Kremlin official referred to Bitcoin as a quasi currency, stating that there is “not the slightest reason” to equate quasi currencies to monetary assets.
He further added that such a move will only have grave repercussions on the financial and economic system of the country. His comments simply reiterate the hard stance taken by the Russian government against cryptocurrencies over the years. Anatoly Aksakov, a member of the State Duma had also previously stated that the decision to legalize cryptocurrency payments will simply lead to the “destruction of a financial system.”
The grim state of the country’s stance against Bitcoin is clearly illustrated in its decision to bar government officials from owning cryptocurrencies and political candidates will have to disclose the amount that they have spent on digital assets over the last three years as part of plans of the Kremlin to stifle the adoption of cryptocurrencies in the country.
Russian Investors Still Have An Affinity For Bitcoin
A recent survey conducted by Russia’s Association of Forex Dealers (AFD) discovered that 77% of participants viewed Bitcoin, Ethereum, and Litecoin as a progressive form of investment over traditional investments like Gold. Ethereum is also gaining a strong foothold in Russia as Vitalik Buterin, its founder has Russian ancestry and has attained a cult-hero status.
Furthermore, several Chinese miners fleeing persecution have begun eyeing Russia as the next country to set up their mining operations. With 11% of the population owning a form of cryptocurrency, Russia occupies a key role in the cryptocurrency ecosystem.
Russia’s decision to state that it is not ready to accept Bitcoin as legal tender may be seen as a nod towards its development of the digital ruble. The digital ruble prototype is billed to be completed in December and testing is to be commenced in January 2022.