Russian Prime Minister Mikhail Mishustin said on March 25 that it is necessary to incorporate cryptocurrencies into Russia’s financial system. Mishustin further added that such issues can only be resolved in cooperation with the Central Bank.
The Russian economy is grappling with the stringent sanctions imposed by Ukraine’s western allies after it launched an ‘unprovoked’ attack on its neighbor. During the first days of the conflict, the Russian ruble lost roughly half of its value against the dollar and is yet to regain its previous levels. At press time, 1 US dollar was trading for 98.25 rubles, which was 154 rubles before the war.
The impact has resulted in Russian lawmakers and ministers finding ways to revive the economy as several companies withdraw their operations amid geopolitical tensions. Unsurprisingly, Bitcoin and cryptocurrencies have become a hot topic amongst lawmakers despite the undisguised hesitation of Russia’s central bank.
Per a recent report by Russian local media RBC.ru, the country’s prime minister Mishustin called for cryptocurrency integration during a meeting with members of the Liberal Democratic Party in the State Duma Friday.
“Undoubtedly, such issues can only be resolved jointly with the Central Bank in order to assess the risks that cryptocurrencies create for Russia’s money circulation,” a translated version of the statement read. Commenting on the need for crypto mining regulations, he added:
“There are other interesting initiatives as well. In particular…the issues of regulating mining, the circulation of cryptocurrency, digital financial assets in general, and the development of online commerce.”
The Russian government and the Central Bank of Russia are currently divided on how to approach the cryptocurrency industry. While the central bank has been urging for a ban on digital currencies and their mining citing its impact on the traditional financial system, the country’s finance ministry has been advocating for proper regulations over a complete ban.