Despite the current state of Bitcoin, it has contributed positively towards the global economy. This is according to the Russian economy minister
Bitcoin in a deflated state
The Economic Development Minister of Russia, Maksim Oreshkin while speaking at Russia Calling, an investment forum organized by VTB Capital stated that Bitcoin at the moment is in a deflated form similar to a soap bubble. However, the minister insisted that the leading cryptocurrency has led to a broader interest across the globe as projects are springing up in new fields, with the blockchain technology the dominant driving force behind these developments.
The minister noted: “You may recall what I said, for example, last year, when Bitcoin’s price jumped up to $20,000, and now it is lower than $4,000, we said very simple things. Bitcoin itself is a soap bubble, it deflated, that’s what happened. Unfortunately, many people were affected [because of their investments in cryptocurrency], but again, in terms of new technologies, new businesses, it gave a positive impetus.”
His statement didn’t come as a surprise to many as it reflects the current state of cryptocurrencies in the country. Despite bills submitted to the parliament regarding cryptocurrency regulation, the Russian government has yet to establish a legal status concerning cryptocurrency trading, ICOs, and crypto mining. Authorities in the country have other the past few months issued vague disclaimers to traders while also advising them periodically.
Russia still not fully in on cryptocurrencies
Russia despite some encouraging signs regarding cryptocurrency is yet to go full in on them. There have been calls by some prominent figures in the country encouraging the government and businesses to adopt blockchain technology due to its numerous benefits. However, assuming the technology to boost the performance of some sectors is still a long way from happening in the country.
Despite that, cryptocurrencies were accepted as a means of payment during this year’s FIFA World Cup which held in Russia. Hotels and other hospitality spots in the country allowed cryptocurrencies as millions of fans trooped in to celebrate the game.
Earlier this year, three draft bills were submitted to the country’s parliament with the aim of correcting the regulatory gap between Russia and the other leading economies. One of the laws proposed that the country doesn’t recognize digital financial assets as legal tenders. However, reports have surfaced over the past few months that Russia is looking at the possibility of going around the US-imposed sanctions with the help of cryptocurrencies.
Back in June, President Vladimir Putin noted that even though his government continues to look at cryptocurrencies with great interest, they cannot make a decision regarding its state at the moment.