Bitcoin Forum

The head of the Central Bank of Russia has spoken against the legalization of cryptocurrency at a meeting between President Vladimir Putin and representatives of the Russian business circles and associations. Meanwhile, the finance ministry is drafting a bill to legalize cryptocurrencies such as bitcoin and regulate their circulation.

Central Bank Worried About Loss of Control

Russian President Vladimir Putin met with representatives of the Russian business circles and associations on Thursday. The meeting was attended by over 50 business leaders, CEOs of leading companies, banks and public organizations.

At the meeting, Elvira Nabiullina, the head of Russia’s central bank, spoke out against the legalization of cryptocurrency in Russia. This was conveyed to journalists on Thursday by the president of OPORA Russia public association, Alexander Kalinin, according to Tass. Regarding cryptocurrencies, the central bank “opposed their legalization in the Russian Federation,” he explained, noting that:

        "Elvira Nabiullina said that the central bank is against, because this is actually a loss of control over the money flows from abroad."

https://news.bitcoin.com/bank-of-russia-opposes-cryptocurrency-legalization-worried-about-loss-of-control/

In terms of freedom Russia is not far behind from China in a negative sense, so it's quite possible that cryptocurrencies not only will not be legalized, but also get restricted just like China did. Right now a lot of mixed signals are coming from Russia, some officials see cryptocurrencies as an opportunity, others as a threat, so it's hard to tell right now what will be the final decision - it will depend on which side will be able to convince Putin. But whatever happens, it won't have a big impact on Bitcoin, because Russia's economy is quite small and its decision won't have any big influence on other countries.

And just last week, Leningrad's governor offered up his very own technology park (and cheap nuclear power too) to Russian crypto miners. Not sure how all these regional authorities work. You've got Swiss municipalities accepting Bitcoin for tax and Russian regions keen to start churning out their own mining farms... all ahead of their central banks.

Same (valid) concerns over capital outflow, of course.

Since they have argued each other, we just watch and wait for whoever will win this debate.
The way central banks work are entirely different with blockchain, they afraid of better monetary system, they afraid more money flow into the country. Nabiullina stated; this has the risk of undermining monetary circulation, maybe it mean undermining bank system, as people could attracted to withdraw their funds out of bank and invest in bitcoin for long term.

Russia is now at a crossroad for cryptocurrency. I think the government is having the hard time deciding which path to go through whether they would be for legalization or restriction. There are people in that government which fully understand the many benefits of welcoming Bitcoin and cryptocurrency which can be seen now in Japan but there are also those opposing it based on the fact they can be ceding some controls which they are now enjoying.

We are hoping that instead of banning cryptocurrency the Russian government would instead adopt some strict measures or regulations for Bitcoin so that there would still be some form of balancing while at the same not killing the swan that is laying the golden eggs. We will see what can be in the next few weeks or months.

Hello to Mr. Putin! Please share your vodka with us!