Vladimir Putin stated he believes cryptocurrencies like Bitcoin need to be regulated by the nation’s central bank.
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“This is the prerogative of the central bank at present and the central bank has sufficient authority so far. However, in broad terms, legislative regulation will be definitely required in future,” said Putin on TASS, owned by the Russian government.
TASS quoted Putin articulating both the threats and opportunities contained within cryptocurrencies.
“It is known that the cryptocurrency is not backed by anything. It cannot be a store of value. No material valuables are behind it and it is not secured by anything,” Putin said.
“It can be a settlement medium to a certain degree and in certain situations. This is done quickly and efficiently.”
TASS also reported Russian prime minister, Dimitry Medvedev, has commented on blockchain technology specifically.
“Cryptocurrencies can also disappear in an exactly the same way in several years and the technology being the basis for their development – blockchain – will become part of everyday reality,” the prime minister reportedly said.
According to the TASS report, cryptocurrency legislation within Russia will be announced in February.