Bitcoin and various altcoins have caused turbulent times in Russia as government constantly changing their position on cryptocurrencies.
Last month, Russia announced its release of its own cryptocurrency, controlled by its own authorities. ‘Cryptoruble’ which cannot be mined, but people are able to trade virtual currency with Russian rubles.
A little more than three weeks later, Russian Communications Minister Nikolay Nikiforov reiterated that Bitcoin could not be legalized in the country’s trade.
Despite all this, Bitcoin and Cryptocurrencies are still feeling healthy, by giving interesting statements about the subject of the bank and financial institution.
“Virtual currencies are a natural outcome of Blockchain technology. We may ban them; we may welcome them. It is trendy to urge people not to play with them. But they are a fact of our life.”
While the man on the street openly buys and sells Bitcoin, Ethereum, and other altcoins, most financial institutions and governments remain wary of virtual currencies.
Anyhow, Gref believes:
“Protectionism is just the first reaction of the state. However, both the institution of private money and the states, which will dare to change the way currency is issued, will eventually find a place for cryptocurrencies in the economy.”
Cryptoruble proves a point
The fact that the Russian government intends to release its own virtual currency proves that Blockchain technology applications are more than global companies.
Russia’s government provides tax benefits for cryptorubles sales.
Cryptocurrencies have cut governments and banks and are one of the major reasons why authorities are opposed to the virtual currency.