Russia has no reason to recognize Bitcoin, said President Putin’s press secretary after El Salvador became the first country to introduce the digital coin as legal tender. In a press release, Dmitry Peskov announced that he is convinced that such a move would not bring any benefit to the Russian Federation.
Kremlin not open to Bitcoin introduction in Russia
The government in Moscow currently sees no reason to recognize Bitcoin, said Dmitri Peskow, press spokesman for Russian President Vladimir Putin. The Kremlin official described it as quasi-currency and insisted that equating Bitcoin with official monetary instruments would only harm Russia’s financial and economic system. Speaking to reporters, Peskov emphasized:
Russia is obviously not ready for such steps.
The statement cited by the RIA Novosti news agency on Tuesday came when the Republic of El Salvador became the first country in the world to recognize Bitcoin (BTC) as legal tender in its jurisdiction. On September 7, El Salvador’s Bitcoin Act went into effect, making market capitalization-leading crypto a national currency alongside the US dollar, Bitcoin.com News reported.
Residents of the small Central American nation can now pay for goods and services with the cryptocurrency, as all prices can be quoted in BTC. In addition, taxpayers can use Bitcoin to meet their obligations to the state. On Monday, President Nayib Bukele announced that his government had also begun buying BTC, and later announced that the country had acquired 200 coins and increased the total to 400, then added “the dip” with an additional 150 coins buy when the price fell below $ 43,000.
Russia, on the other hand, is far from accepting cryptocurrencies as legal tender. Moscow has partially regulated coins and tokens with the new “On Digital Financial Assets” law that came into force earlier this year. Its regulations recognize cryptocurrencies as property, but prohibit their use for payments.
According to the country’s current legislation, the national fiat ruble remains the only legal tender, and “money surrogates” are banned in the Russian Federation. Bank of Russia, the country’s central bank that has categorically opposed the introduction of decentralized digital money, is preparing to launch a digital ruble prototype by the end of 2021.
However, Russian media reported in May that members of the State Duma, the lower house of the Russian parliament, had started work on amendments to the Civil Code that would allow the use of crypto assets as contractual tender. If the changes are approved, the changes will allow the contracting parties to pay each other in cryptocurrency only under the terms of their agreement.
Do you think Russia will change its position on cryptocurrencies in the future? Do share your expectations in the comments section below.
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