During an educational forum broadcast on Russian TV Network, Russia 24, Russian President Vladimir Putin addressed Bitcoin and other digital currencies.
Historically, Russia has been one of the biggest critics of Bitcoin. The country has a reputation of limiting the currency usage, primarily through the banning of many Bitcoin related sites. However, the country has appeared to begin changing its stance against cryptocurrencies. Russia has recently unbanned many of the Bitcoin related websites that were previously blacklisted, and the country is now taking a more lax stance against digital currencies.
Putin’s statement regarding his view of digital currencies is continuous with this change in behavior. Although he fears the value of Bitcoin as a currency, he understands potential of the technology, and agrees that Bitcoin should not be disregarded.
“[Bitcoins] are backed by nothing. This money [is backed by nothing], that’s the point, this is the major problem. They are not really linked to anything and backed by nothing,” Putin said. “However as an accounting unit, these ‘coins’ or whatever are they called, they can be used, and their adoption becomes wider and wider. As some kind of unit in some account, probably, it’s possible,” Putin stated.
Although no definite comments were made in regards to Bitcoin legislation in Russia, Putin made it clear that Russian citizens will not have to question the legality of the cryptocurrency.
The fact that Putin made it clear he did not see Bitcoin as a viable currency in today’s world may appear to be a red flag, but the bigger implications of this forum are overwhelmingly positive.
The fact of the matter is that Putin made no mention in regards to the prohibition of Bitcoin. The bigger picture of this forum is that Bitcoin is not illegal in Russia, and it does not appear that this will change in the near future. For Russian Bitcoiners, this is great news. If you liked this article follow us on twitter @themerklenews and don’t forget to subscribe to our newsletter!