Russian Officials and Legislators Warm to Cryptocurrency

Crypto C’mere: Russian Legislators Warm to Cryptocurrency

In another sign that senior Russian officials are warming up to cryptocurrencies and blockchain, local legislators have adopted a crypto-friendlier definition of digital financial assets. The lawmakers have also confirmed plans to create a national Russian cryptocurrency.

Also read: Belarus Launches First Legitimate Crypto Exchange

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Russian Cryptocurrency Chatter Grows

In crypto legislation under review at the State Duma, the Russian Parliament’s lower chamber, the definition of digital financial assets has been expanded to include all digital rights on the blockchain, Anatoly Aksakov, head of the Duma’s financial markets committee, was quoted as saying by RBC.

Aksakov added that the amendment was made in response to suggestions from the local crypto community and is aimed at making the legislation crypto-friendlier.

The draft bill’s previous language included only tokens, leaving out smart contracts and other blockchain-related digital rights. Deputy finance minister Alexei Moiseyev commented that the government agrees with the legislators’ new treatment of digital assets.

The crypto law is now expected to be finally adopted next month as part of a series of nearly two dozen laws on crypto and digital economy, which are expected to finally create a comprehensive legislative foundation for crypto commerce in the country.

Most recently, the Russian government and legislators have apparently been warming to crypto. Previously, their attitudes were ambiguous. While acknowledging the potential of blockchain as a promising digital technology, many senior officials have dismissed cryptocurrencies as fraud.

Up or Down, the Interest Is There

Earlier this week, Prime Minister Dmitry Medvedev advocated cryptocurrencies despite the volatile period they are going through. The bear market is not yet a reason to “bury” cryptocurrencies, he said, speaking at a local economic forum.

Along the same lines, the finance ministry’s Moiseyev said the blockchain industry has lately changed “in a positive way” and cryptocurrencies in general should no longer be viewed as an instrument of purely financial machinations.

Amidst this more positive climate, Russia confirmed its plans to issue a state-backed national cryptocurrency, which has already been dubbed the crypto-ruble.

“The crypto-ruble will be a currency tied to the regular ruble, the difference being that it is used on the blockchain,” the State Duma’s Aksakov told RBC. “The wider blockchain is used in our financial system, the more sense the crypto-ruble will make.”

Still, according to Aksakov, the crypto-ruble may not arrive earlier than two to three years from now.

The idea of a national Russian cryptocurrency backed by oil was first floated a few months ago and is still considered to be part of the country’s strategy to step down the use of U.S. dollars in its economy.

What’s your take? Is Russia beating other major nation’s to the punch on cryptocurrency legislation? Let us know in the comments section below. 

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