Russia’s Former President Says Country’s Cryptocurrency Ban May Lead To Opposite Result
The proposal of the central bank of Russia to prohibit several crypto-related operations has been inviting a lot of reactions including the response of Dmitry Medvedev (the former president of Russia) as he is now considered to be the new frontrunner to raise such concerns. Medvedev considers that on the execution of a prohibition over crypto, a negative effect would be posed to the ecosystem. Nonetheless, he acknowledged the motivation of the country’s central bank, as reported by Tass.
Dmitry Medvedev disagrees with the Russian central bank
He added that he was hopeful that the Russian Federation’s authorities and the central bank’s representatives will adequately tackle the respective issue, but an outright ban over something usually explores the unexpected outcomes. The respective proposal comes following the completion of the central bank’s work on the financial system of the country. As a consequence, the bank suggested an absolute prohibition over crypto usage, mining, as well as trading.
As per the bank, cryptocurrencies are categorized as being volatile and they are additionally being used in illicit operations and provide people with the opportunity to transfer their funds out of their country making the economy of the country vulnerable. That is why, in the words of the bank, there are a lot of hazards posed by the asset class if it continues to exist in the financial system of Russia along with compromising the role of the organization in maintaining its optimal policies regarding the monetary system.
Many leaders voicing concerns regarding the suggested crypto ban
Medvedev – being the Deputy Chairman of the Russian Federation’s Security Council – supports the other prominent leaders objecting to the proposed prohibition. In these politicians, Maxut Shadayev (the Minister of Digital Development), who has asserted that the crypto-favoring qualified specialists might leave Russia to pursue the respective opportunities elsewhere if the ban gets approved, is also included.
In reaction, other state-level organizations such as Finance Ministry as well as State Duma are working on their frameworks for the regulation of cryptocurrencies. For instance, Anatoly Aksakov – the Duma Financial Market Committee’s State head – recommends crypto legalization via a law proposal. These diverse opinions over crypto have grasped the attention of Vladimir Putin (the president of Russia) who has suggested that there should be a consensus between the above-mentioned agencies. He had pushed for an elucidated directive over crypto to cope with the challenges such as high volatility.
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