The President of the Russian Federation, Vladimir Putin, held a meeting on Tuesday to discuss cryptocurrencies. It was attended by top regulators including the central bank governor, her deputy, and the finance minister.

 The President of the Russian Federation, Vladimir Putin, held a  meeting on Tuesday to discuss cryptocurrencies. It was attended by top  regulators including the central bank governor, her deputy, and the  finance minister. While Putin acknowledged the risks associated with  cryptocurrencies, he stressed the importance to not “build up  unnecessary barriers” for new technologies.  

                                                                         Putin’s Meeting

Russia’s president Vladimir Putin held a meeting “on the use of  digital technology in finance and the implementation of innovative  financial tools” on Tuesday, according to the Kremlin’s website. The  meeting was attended by Presidential Aide Andrei Belousov, Finance  Minister Anton Siluanov, Central Bank Governor Elvira Nabiullina,  Central Bank Deputy Governor Olga Skorobogatova and Qiwi CEO Sergei  Solonin. 

 “Today, I propose addressing a topic that is relevant not only for  our country, not only for Russia, but is probably becoming relevant also  for the rest of the world,” Putin addressed his colleagues. “I am  referring to introducing digital technology in the financial, banking  sphere, and using innovative financial instruments.” The head of state suggested that they discussed the use of  cryptocurrencies, “taking into account all the various components of the  problem,” Tass summarized. 

Putin on Cryptocurrencies, Outlining Risks

Before the meeting started, the president of Russia gave a brief  introduction on cryptocurrencies. “As is known, virtual currencies, also  known as cryptocurrencies, are becoming or have already become very  popular,” he began. “In certain countries, they are becoming or have  already become legal tender, as well as an investment asset,” Putin  continued, adding that: 

I would like to draw  your attention to the need to use the advantages that are offered by  new technological solutions in the banking sphere.
 

He then pointed out some risks associated with using  cryptocurrencies, stating that “the use of cryptocurrencies also carries  serious risks. I know the central bank’s position; I have discussed this topic with the Governor on several occasions.” He elaborated: 

First and foremost,  this is an opportunity for laundering illegal gains, tax evasion and  even financing of terrorism, not to mention the proliferation of scams  to which ordinary people can fall victim. Cryptocurrencies are issued by  an unrestricted circle of anonymous entities. Therefore, buyers of  cryptocurrencies may be involved in illegal activity.
 

Furthermore, Putin emphasized the lack of security for  cryptocurrencies. “If the system breaks down or, as it is trendy to say  today, if there is a bubble, there will be no entity legally responsible  for that. This is a serious matter that we should bear in mind when  discussing this topic,” he described. 

Do Not Create ‘Unnecessary Barriers’

After outlining the risks he associated with cryptocurrencies, Putin went on to emphasize the need for regulations. Citing how many countries are already working on creating legislative  framework for digital currencies, he asserted that “we need – based on  international experience – to build a regulatory environment that will  make it possible to codify relations in this sphere, reliably protect  the interests of citizens, businesses, and the state and provide legal  guarantees for using innovative financial instruments.” To that end, he  emphasized: 

It is important not to  create unnecessary barriers, of course, but rather to provide essential  conditions for advancing and upgrading the national financial system.
 

In June, Putin met  with Ethereum founder Vitalik Buterin and briefly discussed the  possibility of using Ethereum within the Russian government. The Russian  President has been a proponent of new technologies. According to First  Deputy Prime Minister Igor Shuvalov, Putin understands that hi-tech and  the digital economy spur growth rates, adding that “it is not an  overstatement to say that the president is passionately fond of it.” What do you think of Putin’s suggestions to the  regulators? Do you think the central bank will still create barriers to  cryptocurrencies? Let us know in the comments section below. 

Surce: https://news.bitcoin.com