Earlier this week, Vladimir Putin, the Russian President, finally gave his public opinion on Bitcoin and digital currencies for the first time. The Russian President issued his first remarks in an interview for an educational forum broadcast on domestic TV network Russia 24.
In an interview with the nation’s domestic TV network, the Russian President appeared to be very optimistic about the Bitcoin technology and its disruptive potential. While he considered the use of digital currency as money to be somehow problematic, he also recognized the technology could be a novel way to manage or calculate transactions. He said the Bank of Russia’s efforts to research future applications for Bitcoin have been beneficial and that the nation may find use for the technology in a near future.
Putin’s comments were taken by Russian cryptocurrency enthusiasts as a positive sign. He seemed to be pretty optimistic about the possibility of using the blockchain in order to keep track of accounting records. However Putin didn’t give any conclusive statements regarding the government’s position over this matter.
Still, Putin didn’t forget to mention the problems that Bitcoin presents; according to him, cryptocurrencies still have major reliability issues, but the technology they run on may be useful to facilitate transactions down the road.
Vladimir Putin commented:
“Bitcoins are backed by nothing… They are not really linked to anything and backed by nothing. However as an accounting unit, they can be used, and their adoption is becoming wider and wider. As some kind of unit in some account, probably, it’s possible. We do not reject anything, but there are serious, really fundamental issues related to its wider usage.”
The Russian President stated that the fact that the currency isn’t backed by anything represents a major issue with adopting digital currencies. Though he said the nation isn’t planning to reject cryptocurrencies, the issues related to using them can’t be overlooked.
Putin stated that the Bank of Russia has so far chosen to take a reasonable position on the technology by exploring, its applications. While the Putin didn’t mention anything concrete about legislation in Russia, it’s definitely a good sign that the Russian government doesn’t want to prohibit something before getting a having a more intimate approach.
In a country that has long had one of the most reactionary stances regarding digital currency, The latest Vladimir Putin comments regarding cryptocurrency will most certainly lead to a new era of prosperity for both the local Bitcoin community as well as for digital currency-related Companies and entrepreneurs.
Do you think that this will have a positive impact on the country’s Digital Currency Industry? Let us know in the comment section below!
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Nuno Menezes is a Portuguese Bitcoin Entrepreneur and a crypto currency’s enthusiast supporting the Bitcoin Portuguese Community. He is an Anthropologist and a Writer and his current field of work is virtual currencies. Complementing his Social Sciences Master degree with a Professional background in telecommunications along some experience in Computer Science, he intends to bring knowledge and understanding about the impact of crypto currencies in society.