Russia's President's Vague Comment About Cryptocurrencies

During the yearly Russian question and answer (Q&A) session with the president Vladimir Putin on Thursday 7 June 2018, the president made statements that have been referred to as vague and ambiguous and at the same time negative. This live session which has been referred to as "Direct Line" was headed by Artem Khokholikov who is a famous blogger in Russia. Artem first asked the president if the government will in the future develop their own special cryptocurrency. To answer the question, the president tactfully stated that the country cannot have its own cryptocurrency in the literal sense and definition of the world. To back up his statement, he said that these digital tokens or cryptocurrencies cannot be developed and owned by a central body like the government of a country. To clarify his points, he said that this is because they are cross-border definitely meaning that they cannot be owned and controlled by one government. About the mining of cryptocurrencies, Putin stated that although the government does not regulate the activity it treats them tactfully and carefully.
When asked about cryptocurrencies being used as a form of payment for goods and services, he tactfully mentioned that he is aware that Japan has partially announced its adoption of these tokens as a form of payment for all goods. He then clearly stated that this does not work in other countries as it does in Japan. He further stated that the relationship these digital tokens have with the central bank of the country is that the bank does not in any way consider them as a store of value neither are they a form of payment for goods and services bought. He stated that these tokens are not backed by anything and so he advises everyone to treat them with caution.
Putin went further to state that the government at this time would only watch to see how this new trend or phenomenon unfolds and that only then can they carefully examine how the country can fully participate in the process of this unfolding trend or phenomenon. He went further to add that the country would look for ways to make use of these cryptocurrencies to ensure that they are able to eliminate any form of restriction that they might face in international financial activities.
This live talk session with the president happens to be the 16th session and it is an avenue for the people to ask the president curated questions in respect to the foreign and domestic policies of the country. For a long time, Russia has been in the news as regards the development of a state-owned and controlled cryptocurrency platform. This year, reports were that a launch of a state-owned and controlled cryptocurrency would be released in the middle of 2019. While this news was making rounds, an advisor to the president on economic affairs revealed that this cryptocurrency named "CryptoRuble" would help in alleviating the pressures mounted on financial institutions in the country.