As Wallebi reported previously, Russia planned to ban cryptocurrency. Although the government announced its plan earlier, a lot of crypto users and firms keep working in this area. In fact, Russia didn’t have any clear position against cryptocurrencies. The question, which pop ups with the new regulations is that “Is Russia harming its economy by banning crypto payments?”. In this article we are going to take a look at the consequences of banning crypto in Russia.
The consequences of banning crypto in Russia; government will take action on Jan. 1
Russia planned to officially ban crypto payments on Jan.1.2021. Some senior executive commented about the new regulation.
Anatoly Aksakov is Russia’s primary crypto opponent. He is also the key architect of Russia’s crypto ban. It was in August that Aksakov said; legalizing crypto payments is equal to ruination of the financial system.
On the other hand, experts like Mike Belshe, the BitGo CEO or Gleb Kostarev, the Binance’s head operation in Russia believe that legalizing crypto payments has no harm to Russia’s economy.
Gleb Kostarev mentioned in his interview that there are many countries such as Netherlands and Venezuela, which legalized crypto payments and it did not affect their economy in negative way. He believes that those are good examples of a successful integration of cryptocurrency projects with traditional financial services.
Mike Belshe the CEO of BitGo also mentioned that Russian ruble affected significantly by financial crisis in 2014. It didn’t have any relation to cryptocurrencies. He believes that Russia should choose the same way, which countries like Zimbabwe, Argentina and Venezuela chose. Russia has to look for an alternative currency in order to treat their own currency weaknesses.
He added; governments are not able to stabilize their currency. But, citizens need it at the first place. If Russia really concerns citizens, they should legalize crypto rather than ban it.