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Last Updated : Jun 11, 2018 08:47 PM IST | Source: Moneycontrol.com

Cryptocurrency has its place; no state can have its own cryptocurrency: Putin

Putin also pointed out how cryptocurrency cannot be a means of payment or saving because digital money is basically not backed by anything

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Russian President Vladimir Putin delivers a speech at his election headquarters in Moscow, Russia. (Reuters)
Russian President Vladimir Putin delivers a speech at his election headquarters in Moscow, Russia. (Reuters)

Russian President Vladimir Putin recently talked about how Russia has to carefully consider its participation in the development of cryptocurrency.

"Neither Russia, nor any other country could have a national cryptocurrency," said Putin at an annual question-and-answer session with Russian citizens.

In a new television feature introduced in Russia this year, called "Direct Line", bloggers and vloggers are allowed to ask questions to the Russian President on behalf of their followers.

According to various reports, many youths displayed interest in the development of cryptocurrency and asked numerous questions about it.

"Will Russia have its own cryptocurrency, and if, will it be controlled by the state? Also does the president think that in the near future cryptocurrency will replace completely the standard fiat money?" asked vlogger Artiom Khokholikov.

Putin replied: "The question is somewhat incorrect. Neither Russia, nor any other country can have their own crypto, by definition. If we talk about cryptocurrency this is something that goes beyond national borders."

"In the overwhelming majority of countries, cryptocurrency is not a means of account. It is partially used in Japan, but in other countries it doesn’t work," he said.

The Russian President also pointed out how cryptocurrency cannot be a means of payment or saving because digital money is basically not backed by anything.

"We have to treat this very accurately and carefully, such phenomenon has its place in the world, it is developing! We have to carefully analyse, watch what’s going on, and see at what stage and how we can participate in this process and use it, including by the way, to avoid any restrictions in the sphere of international financial activity," Putin said.
First Published on Jun 11, 2018 08:47 pm
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