International sanctions are driving greater adoption of cryptocurrencies in Russiasaid one expert. According to the analyst, they will probably stimulate further growth in the sector.
The claims were made by Yuri Myshinsky, chairman of the board of directors of the Digital Transformation Association, and reported by Podmoskovye Segodnya. Myshinsky noted that “historically, Russia’s relationship with cryptocurrencies was somewhat contradictory.”
Russian lawmakers are trying to pass a bill that would legalize cryptocurrency mining in the country and force industrial miners to pay taxes on their earnings.
Many observers have commented that this is likely to lead to a huge increase in Russian cryptocurrency mining.
Several Russian energy producers are keen to set up data centers to mine cryptocurrencies using gas extracted at oil drilling sites. The Ministry of Finance urgently wants to provide Moscow with an increase in revenue by legalizing cryptocurrency mining.
However, the central bank wants to ensure that the tokens mined during these operations are traded and do not “enter the Russian economy”. But the bank will probably have a hard time guaranteeing that this will indeed be the case.
No interest in a cryptocurrency ban in Russia
The central bank has repeatedly called for a ban on cryptocurrencies, but there are still plenty of supportive voices in the government who are strongly against it.
Myshinsky explained:
“At first, the government made statements that cryptocurrencies would never be legalized in Russia. Then came the compromises, using some of the benefits of cryptocurrencies, but imposing regulations.”
The expert suggested that efforts to create legislation related to the cryptocurrency sector had so far proved unsuccessful and that the crypto conversations had ultimately led the government nowhere. But, he hinted, a more pro-crypto approach was starting to develop.
Myshinsky said:
“Initially, the government stated that cryptography cannot be used as a unit in internal calculations. But now it is taking note of some exceptions ”.
And, he noted, the year is ending with the Central Bank talking about “testing” the use of cryptocurrencies as a payment instrument in “international agreements”. Myshinsky said that “this shows that cryptocurrencies are becoming part of the international financial picture” for Russia.
And despite efforts by the US and the EU, Myshinsky said cryptocurrencies offer a lot of potential for Russian companies looking to circumvent international sanctions.
In fact, the expert said that cryptocurrencies “can offset the effects of some sanctions, including banking bans.” “After all,” he said, “cryptocurrencies cannot be controlled by international financial institutions.”
Myshinsky concluded that the “sanctions have given Russians an extra incentive to pursue cryptocurrency-related business,” but it still isn’t the main reason why Russians are turning to cryptocurrencies.
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One expert predicts increased adoption of cryptocurrencies in Russia for these reasons