Russia’s Vladimir Putin Says Crypto are “High Risk” Investment
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The President of Russia, Vladimir Putin, has said that cryptocurrencies carry a very “high risk” for investors while also recognizing that the asset class could play a major role in a future financial network. The statement was made at the “Russian Calling” investment forum in Moscow.
Crypto Volatility is Colossal—Vladimir Putin
According to RBC, Putin considers digital assets to be highly volatile and therefore risky investment instruments.
It is not backed by anything, the volatility is colossal, so the risks are very high. We also believe that we need to listen to those who talk about those big risks.
The volatile nature of crypto assets is a recognized risk associated with the industry, but experts in the space believe that this volatility is because cryptocurrencies, including Bitcoin, are still in their early days.
This view was recently shared by the CEO of SkyBridge Capital, Anthony Scaramucci, who compared Bitcoin to Amazon in its early days. He stated that though the company was unstable in its early beginning, it has, however, grown to become the number one e-commerce company in the world and he believes the same thing could happen with Bitcoin.
Despite his concerns about the attached risks, the Russian President recognizes the possibility of digital assets becoming an integral part of the future financial system. For this reason, he declared that the country wouldn’t be imposing a ban on crypto activities, instead they would observe developments and regulate the industry when necessary.
Putin’s Previous Statements About Crypto
This is not the first time that Putin is talking about the crypto industry. In October, he had opined that Bitcoin alongside other crypto assets could one day become the means of payment and unit of account.
When asked whether crypto could replace the US dollar for settling oil trades, he explained that that conversation was premature. Before then, he had said that cryptocurrencies were mainly used for criminal activities.
Russia’s Digital Ruble is Coming
The country is also currently working on a digital version of its fiat currency, digital ruble, which is expected to go live in 2022. The first pilot group for the project was held in June 2021 and it included 12 banks. There will likely be additional tests before the nationwide launch of the digital ruble.
Cryptocurrency transactions in Russia remain very high despite the concerns of the President. A recent report published by the country’s central bank stated that around $5 billion (350 billion rubles) worth of crypto trades happen every year in the country.
This article was originally posted on FX Empire
