In a recent interview with CNBC, the president of Russia, Vladimir Putin, stated that Cryptocurrencies have a right to existence. In addition, the 69-year-old is of the opinion that these currencies qualify to become modes of payment.
He, however, warns that these digital assets might not be the best when it comes to trade oil and other bulky commodities the country exports.
Russia is on the journey of getting other currency options with its president, adding that America uses its dollar as a weapon.
Repeatedly, the Bank of Russia has issued warnings that these digital assets come with volatility-related issues. Unlike China, however, Russia doesn’t plan on banning Crypto mining activities.
This year, China banned all Crypto mining activities, therefore declaring all Cryptocurrency transactions illegal. The Central Bank of China made the announcement adding that investors are at risk of fraudulent activities.
As a result of the Chinese ban, the Bitcoin price went down by about two thousand US Dollars. The Asian country had issued numerous bans on Crypto since 2019, but the currency experienced a significant crackdown this year. Despite the several prohibitions issued by the Chinese government, trading went on online through foreign exchanges.
Tesla CEO Elon Musk also played a significant role in determining the price of Bitcoin. Earlier, the billionaire said that Tesla would start accepting BTC as a mode of payment but later restated that it would not.
Notably, Musk’s tweets have the power to sway the market.
Russia and Cryptocurrency
Russia is currently developing CryptoRuble, its own digital currency. Unlike Bitcoin and other cryptocurrencies, CryptoRuble will not undergo mining. The reason being the government will issue these tokens.
This digital currency will have the same price as the Ruble (Russia’s regular currency). The first test that involved 12 banks happened this June.
Vladimir Putin made the first announcement on CryptoRuble in 2017. The currency will go live next year after further tests get done by the end of 2021.
The Central Bank of Russia will issue this digital currency. CryptoRuble will act as a CBDC (Central Bank Digital Currency).
Vladimir Putin, 69, is the President and former Prime Minister of Russia.
What is Bitcoin?
Bitcoin (BTC) is a decentralized digital currency that can get transferred by users without a third party getting involved.
The currency is the leading Crypto in terms of market cap. BTC has a market capitalization of eight hundred billion US Dollars. In addition, the supply limit for this Crypto is twenty-one million.
Crypto enthusiasts and critics strongly believe that the Cryptocurrency market will take over the world’s financial system. Therefore replace fiat currencies in the long run.
Satoshi, the pseudonymous creator/s of Bitcoin (BTC), predicted a fiat currency flood when writing the Cryptocurrency’s white paper. To shelter people from the raging fiat waters, Satoshi invented the Bitcoin digital Asset ark.
The ark will save those who are keen on heeding to the anonymous creator’s warning.
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