Russian cryptocurrency is a no go, but blockchain is a worthy idea

Speaking during the annual live session with the Russian public, the President of Russia Vladimir Putin touched upon the issues related to digital assets and blockchain technologies. While his comments were rather evasive and ambiguous, the position of the Russian leader boils down to a simple formula: "crypto as a currency is bad, blockchain is good", which is mostly similar to the approach of the majority of countries. 

Putin denied speculations about creating a national digital coin, saying that centralized states cannot have their own cryptocurrency that is decentralized by its nature and goes beyond boards. Earlier this year the head of the Russian Ministry of Finance Anton Siluanov also quashed state cryptoruble rumors but supported the private coin, issued without public financing.

During the four-hour "ask me almost anything" session Putin confirmed that the Central Bank of the Russian Federation does not consider cryptocurrency either a means of payment or a store of value, adding that it is necessary to tread carefully.

And Russia treads carefully indeed. The Russian parliament - the State Duma - has discussed three bills about blockchain and digital assets with two of them passed the first round of hearings out of three in May. 

Notably, the head of the stated evasively hinted at a possibility to use cryptocurrencies to escape financial limitations. While his working was very careful, this may be interpreted as a reference to Western sanctions imposed on the country. It is also worth noting that Russia is exploring blockchain opportunities to reduce its SWIFT dependance. 

The Central Bank of Russia plans to create a blockchain-based single payment area within the Eurasian Economic Union (EEU), the deputy chair of the central bank Olga Skorobogatova said back in April.