“Cryptocurrencies have a right to exist and to be used as currency,” Putin said during the interview. However, he added with one breath that it was too early to consider the use of cryptocurrencies in trade in oil and other commodities, which make up the majority of Russian exports.
–
His position on cryptocurrencies is therefore not as open as in the case of President Salvador Nayib Bukele. He sees in the bitcoins, which are so far the most valuable cryptocurrency in the world, the future. At his instigation, even bitcoin was accepted last month in this Central American country as official currency alongside dollars.
–
President of El Salvador Nayib Bukele
Photo: Jose Cabezas, Reuters
However, it is clear that Russia is looking for alternatives to dollar trading. And since 2014, when he had to face Western sanctions after the annexation of Crimea. Putin has previously repeatedly accused the United States of “using its currency as a weapon.”
–
However, the Russian central bank has repeatedly warned investors against trading in cryptocurrencies, mainly due to strongly fluctuating exchange rates. Officially, cryptocurrencies may not be used as a means of payment in Russia.
–
It is not yet clear whether this will change after Putin’s statement. What is certain, however, is that bitcoin has responded to Putin’s conversation with strong growth. On Friday morning, it shot up to $ 59,961 (CZK 1,311,710), which is the highest value since the fall of May. At the beginning of last week, the exchange rate was only $ 47,777 (CZK 1,045,170).
–
Russian President Vladimir Putin
Photo: Sputnik, Reuters
Chinese campaign against cryptocurrencies
With the bitcoin exchange rate in September, Beijing was slapped when the Chinese central bank announced that all cryptocurrency transactions were outlawed. The ban applies not only to services provided in China, but also to companies that provide foreign cryptocurrency transactions in the world’s most populous country.
–
At the same time, cryptocurrency transactions have been outlawed before. However, this mainly concerned financial institutions and payment companies, which were not allowed to provide any cryptocurrency services in the world’s most populous country.
–
However, China has now taken its campaign against cryptocurrencies to a whole new level. The new directive, which was published on the official website of the local central bank, prohibits payments in bitcoins and other virtual currencies to anyone.
–
In practice, this means that the Chinese are not allowed to trade in cryptocurrencies in any way. It is also illegal for anyone in China to provide any cryptocurrency transactions to foreign companies or individuals.
—
