Russian President Vladimir Putin takes U-turn, says bitcoin has significance and value

Up to this point, the Russian government had been wary of employing Bitcoin and other cryptocurrencies as investment vehicles.

Authorities in the country have voiced concern that the cryptocurrency’s volatility and lack of transparency could be used to facilitate money laundering.

The question now is whether Bitcoin and other digital currencies may be used to settle oil and energy contracts while the Russian government abandons the dollar and seeks new ways to trade these commodities in various currencies.

Putin addressed the matter in a recent interview with CNBC that was published on the Kremlin’s website, noting that it is too early to consider such a step because Bitcoin and cryptocurrency investments are unstable and premature, but he also sketches a roadmap for future possibilities.

Changing his mind

He did, however, shed light on Bitcoin and cryptocurrencies, stating that they have significance and value and offering his thoughts on their future development, noting, “Everything evolves, everything has a right to exist… we’ll see how things work out.”

These clarifications, together with similar statements made by Russia’s deputy finance minister, Alexei Moisees, takes the country away from a complete prohibition of digital currency.

The declarations of Moisees, which were published on the Interfax website, proved that they had no intention of following China’s lead.

Many countries, including the United States, are revising their positions on cryptocurrency, and new legislation is being hoped for.

Bitcoin making headway

While China’s outlawing of cryptocurrency has had a major impact on the market, fresh measures from other countries may continue to open doors.

The stats make it more difficult to dismiss the digital currency’s rise. While the head of the State Duma Committee, Aksakov, agreed that cryptocurrencies are not secure, he also acknowledged the profit prospects they provide.

Putin also mentioned the rise in inflation in the United States, noting that the world’s largest economy appears to be in jeopardy. As the dollar’s foundations sway, digital currencies gain ground, he said.

 

Image courtesy of Cointelegraph News/YouTube

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