Russian President Vladimir Putin maintains that cryptos can be used as a “means of payment”

  • Following China's crackdown on cryptocurrencies, the United States is considering new crypto regulations. 
  • While cryptocurrencies are under regulatory scrutiny in most countries, the Russian President has signaled tolerance of crypto. 
  • The President cautioned against the use of cryptocurrencies for trading oil and other commodities that make up a high percentage of Russia's exports. 

Cryptocurrencies are under scrutiny by financial watchdogs and regulators worldwide. China's crypto ban shifted Bitcoin mining and hashrate to the United States, which now accounts for a third of all BTC being mined. 

Vladimir Putin accepts the role of cryptocurrencies in payments

Russian President Vladimir Putin commented on the use of cryptocurrencies in a recent interview. In contrast, cryptos are drawing scrutiny for their illicit use in laundering money and criminal activities. 

Putin said cryptocurrency "has the right to exist and can be used as a means of payment" and signaled a tolerance of digital assets. The Russian President cautioned that it was too soon to talk about using crypto as a currency for its exports of oil and other commodities. 

Russia has looked for alternate currencies to the USD since sanctions hit the country in 2014. Proponents argue that decentralized money (cryptocurrencies) will replace centrally issued fiat currencies.

Traders and early adopters consider crypto a secure and effective means of payment; however institutions like the International Monetary Fund (IMF) caution against its use. 

The IMF recently stated,

Tougher regulation is needed to prevent the rapid growth in cryptocurrencies leading to financial instability, defrauding of consumers and the funding of terrorism.

The Bank of Russia has warned investors against using cryptocurrencies for domestic payments, citing it as a highly volatile form of currency. The country has no plans to ban cryptocurrencies, unlike Beijing. 

Jon Cunliffe, deputy governor of financial stability at the Bank of England, was recently quoted:

Financial stability risks currently are relatively limited, but they could grow very rapidly if, as I expect, this area continues to develop and expand at pace. How large those risks could grow will depend in no small part on the nature and on the speed of the response by regulatory and supervisory authorities.

Bank of England, therefore, considers the matter of crypto regulation an urgent one. The monetary authority of England is working on issuing a digital pound, and a joint task force of two UK regulators is deployed to the project. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Cardano price eyes 25% gains as on-chain metrics signal recovery

Cardano price is consolidating after a swift recovery from the December 4 flash crash. Investors can expect the next leg to set up a higher high and flip the narrative bullish. Moreover, on-chain metrics for ADA also suggest that this move is possible.

More Cardano news

Shiba Inu price deviates from the mean, hinting at a 25% upswing for SHIB

Shiba Inu price looks ready to move higher as it collects liquidity resting below crucial levels. This move has primed SHIB for an upswing, and the confirmation will arrive after a higher high is set up. A swing low below $0.0000295 will invalidate the bullish thesis

More Shiba Inu news

Bitmart exchange confirms hack resulting in $200 million in crypto losses

Popular cryptocurrency exchange Bitmart has recently suffered a hack, with an estimated $200 million in losses as a result. The hacker made away with over 20 tokens, including Shiba Inu, Binance Coin, SafeMoon and used decentralized ...

More Cryptocurrencies news

XRP must break $1.20 to regain bullish momentum

A brief technical and on-chain analysis on XRP price. Here, FXStreet's analysts evaluate different patterns and indicators that suggest Ripple faces stiff resistance.

More Ripple news

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!