Putin Warns Cryptocurrencies Carry Risks, Admits They May Have Future – Bitcoin News

Russian President Vladimir Putin has again spoken about cryptocurrencies, noting the “high risks” associated with the virtual assets. However, the Russian leader has also acknowledged that digital currencies may have a future and it’s necessary to follow their development.

Russia’s Putin Still Cautious About Crypto

Russian President Vladimir Putin had another opinion on cryptocurrencies. Speaking at the VTB Capital Investment Forum “Russia Calling!” 2021, the head of state noted that crypto assets still carry a lot of serious risks. Putin provided more details, as quoted by Life.ru.

Some countries ban cryptocurrency. You cannot back it with anything. The volatility is too high and the risk is very high. It is important to pay attention to high-risk people.

At the same time, Russia’s strongman did not rule out that there may be a future for cryptocurrencies. He also stressed that it was important to monitor and follow the entire process, as it evolves.

Russian Federation is yet to regulate cryptocurrencies. Although the law “On Digital Financial Assets,” which went into force in January, provides some clarity regarding virtual coins and certain related activities like their issuance, many aspects such as mining and taxation still require regulation through new legislation.

The Bank of Russia is still opposed to bitcoin, and other digital currencies as payment methods. However, it has proposed legal liability. In September, Putin’s press secretary, Dmitry Peskov, also took a hard stance on the matter, making it clear that Russia has no reason and is not ready to recognize bitcoin as legal tender.

Putin’s latest comment on cryptocurrencies is not his first this year. In an interview with CNBC on the sidelines of the Russian Energy Forum in Moscow this past October, he admitted that decentralized digital money could one day be employed in oil trade settlements, although this while remarking that it’s still too early for that. The United States is accused of undermining its currency. He also pointed out the decline in U.S.-dollar-denominated settlements, while other countries have been reducing their dollars reserves.

In its fight against corruption, the Kremlin pursues officials with cryptocurrency. The presidential administration issued a decree in August instructing various ministries and central banks to review the declarations made by employees of the government about digital assets.

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