Vladimir Putin Believes Risks Related To Crypto Are Extremely High

The President of the Russian Federation Vladimir Putin believes the risks associated with crypto are extremely high and thinks that digital assets are a dangerous investment so let’s read more in our latest cryptocurrency news today.

Vladimir Putin believes Bitcoin and other cryptocurrencies are high risks for investors. He predicted however that the asset class could play a huge role in the future of the financial networks. The president talked about his opinion during the “Russian Calling” investment forum in Moscow and according to him, private digital assets are highly volatile which is why they are a risky investment:

“It is not backed by anything, the volatility is colossal, so the risks are very high. We also believe that we need to listen to those who talk about those big risks.”

The volatile nature of the cryptocurrencies including Bitcoin is present but the leading cryptocurrency is still a new token compared to currencies in general and it could overcome its price fluctuations in the near future, especially if it gets regulated. Anthony Scaramucci, SkyBridge Capital’s CEO is a huge supporter of this thesis and he even compared BTC to Amazon, remaining that the company was also unstable during its early days but now it is the most influential company in the world. While criticizing cryptocurrencies, Putin did not rule the chances of crypto becoming a part of the future monetary system. Of course, in some countries, cryptocurrencies are being used more and more but maybe we would have to monitor how this process will develop in the future.

China, on the other hand, imposed a total ban on crypto mining and trading. Putin commented that the Russian Federation will not do that but the authorities will closely monitor the developments in the industry and will implement levels of regulation that will not harm the economy of the country:

“As for Russia, we will act on the basis of the realities that are developing in our country. There should be some elements of regulation, but not those that would constrain economic activity.”

This is not the first time when the Russian President shared his viewpoint on the crypto universe as he once noted that bitcoin, as well as other digital assets, could be one day used as a unit of account and a means of payment. When asked about his opinion on whether crypto can replace the US dollar, Putin said that it is too early to talk about that issue:

“In order to transfer funds from one place to another – yes, but to trade, let alone trade in energy resources, in my opinion, is still premature.”