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Vladimir Putin Offers Hope for Crypto in Face of Central Bank Call for Ban

01-27-2022

Russian President Vladimir Putin has called for consensus between his country's government and the central bank following the latter's recent call for an outright ban on crypto.

 

  • Speaking in a video conference with government ministers on Wednesday, Putin asked for "some kind of unanimous opinion" between his government and the Bank of Russia to be formed via discussions in the near future.
  • Russia's central bank called for a complete ban on crypto in a report last week, citing its volatility and use for illegal activities.
  • The Bank of Russia's crypto ban call has been opposed by the country's finance ministry on the grounds that it would undermine the industry's technological development.
  • "The central bank has its own position. It is connected with the fact that the expansion of this type of activity carries certain risks, and first of all for the citizens of the country, given the high volatility and some other components of this topic," Putin said.
  • This should, however, be offset against "certain competitive advantages" that Russia holds when it comes to mining, due to the country's surplus of electricity and "well-trained personnel," according to the Russian head of state.
  • As of August, Russia was the world's third-largest bitcoin mining country behind the U.S. and China, according to the University of Cambridge's Center of Alternative Finance.

 

Source: Coindesk