Interest in Cryptocurrency Within Russia Is “Starting to Fade Away”
The Russian economy has been toying with the idea of cryptocurrency for a small time now, and the locals in the country were hoping to see some regulations that would allow them to get involved. However, in a recent turn of events, the “cryptocurrency craze” seems to be “starting to fade away,” according to Russia’s central bank. However, rather than feeling discouraged or any negativity towards that transition, the bank feels that it is a “fortunate” change.
The head for Russia’s central bank, Elvira Nabiullina, spoke at the fourth FINOPOLIS fintech forum, and said that change in interest from businesses is what brought on the change. Apparently, these organizations are no longer feeling the pull to get involved with blockchain technology and initial coin offerings.
RIA Novosti, a local news outlet in Russia, reported that Nabiullina said,
“We’re holding this forum for the fourth time, and in that period a cryptocurrency craze managed to break out which is now – fortunately, in our opinion – beginning to fade away. During this period, technologies such as Blockchain sparked wild enthusiasm, and in our view [businesses] is now starting to adopt a soberer approach to them.”
Still, despite the lack of interest, Russia is still in a state of flux about whether cryptocurrency is even going to be legalized in the country. The laws that they’ve established are only partially approved with the parliament, and the delays are mostly credited to the delays made by president Vladimir Putin. Throughout this time, the Bank of Russia has mostly supported blockchain technology, with state-owned Sburbank working on their own use cases this year. Nabiullina commented,
“Businesses are trying to cultivate such technologies by finding practical use cases for them.”
With all of the discouragement that the Bank is discussing now, consumers may be surprised that they implied that digital finance would remain a concept with longevity for the market. Nabiullina commented,
“Digital technologies are becoming the norm of modern world. Digital finance is no longer the domain of the advanced consumer; it’s the domain of the mass consumer.”
Based on how fluctuating the opinions of “digital finance” within Russia lately, it seems that the institution hasn’t truly adapted to the innovation.
Cryptocurrency has, at best, been getting inconsistent attention from the courts, considering that there still isn’t legislation to deal with the digital assets. Taxation will be another concern in the government, if they ever decide on the laws that should govern it.