Russian Prime Minister Claims Cryptocurrency’s Bear Market Shouldn’t Dampen Enthusiasm for Bitcoin
Russian Prime Minister Dmitry Medvedev issued a surprising statement on cryptocurrencies this past week. In a speech in Russia on January 15, Medvedev claimed that the ongoing crypto bear market should not be a reason to “bury” cryptocurrencies.
Crypto prices have slumped as much as 90% since their highs in December 2017 and January 2018. We’re in the midst of a prolonged bear market. Despite the depressed market enthusiasm, however, Medvedev believes there’s a promising future for cryptocurrencies.
Meanwhile, the Russian parliament is also debating whether or not to approach a long-awaited bill on digital assets. Countrywide, Russia seems to be aiming to develop crypto-friendly regulations, and that support extends to the highest level of government with the office of Prime Minister Dmitry Medvedev.
The Russian Prime Minister and former President urged the public to closely observe the state of crypto markets. He mentioned things like the extraordinary volatility volumes in the past year, claiming that it should not be a reason to “bury” cryptocurrencies despite the slumping market:
“But sure, it is not a reason to bury them [cryptocurrencies]. There is both a bright side and a dark side here, as well as in any social phenomena and any economic institution. We should monitor carefully what is going on in the space.”
Medvedev made the remarks in a speech at the 10th Gaidar Forum, as reported by Russian news agency TASS.
Medvedev’s speech broadly covered uncertainty in the global economy. As the economy goes through a period of uncertainty, we’re dealing with new challenges related to digital transformations and protectionism. Medvedev claimed the challenges facing the global economy “are now fully in front of us” after a decade of predictable issues:
“The past decade has brought many challenges, in part, they were quite predictable, in many ways they became unexpected, and now both developed and developing economies are facing them.”
Medvedev mentioned issues like the structure of the energy market, the increasing prevalence of green energy sources, rising protectionism, and intensifying competition.
Medvedev Believes The Cryptocurrency Situation Should Be Monitored
Most major politicians have avoided making definitive statements on cryptocurrencies. Medvedev, however, has taken a different approach, claiming that we need to carefully monitor the situation with cryptocurrencies while waiting to see where they go.
“We should watch closely what happens to them [cryptocurrencies],” explained Medvedev.
These comments exist in stark contrast to other politicians. Some politicians are ambivalent to cryptocurrencies. Others seem downright opposed to cryptocurrencies. Medvedev, however, seems to believe crypto has potential, and that the Russian government can benefit by monitoring cryptocurrencies to see where they go.
Overall, Medvedev’s cryptocurrency remarks were just a brief part of his speech. Medvedev also touches on other digital innovations – like the development of 3D technologies and the emergence of “digital twins”, or virtual prototypes of physical products or processes.
The Russian government has already taken steps towards formalizing crypto oversight. This past week, the State Duma discussed a draft bill on crypto regulation. The long-awaited bill covers “digital assets”, which is the Russian government’s preferred term for crypto-related technologies.
The Russian parliament first passed the crypto bill’s initial reading in May 2018, although the new version has been edited after criticism from the crypto industry. The bill lacked substance regarding mining, for example, and was sent back to the first reading stage.
While other countries seem to be ignoring cryptocurrencies, Russia is actively working with the crypto industry to develop clearer regulations. As Dmitry Medvedev’s speech, this past week indicates, support for crypto seems to extend to the highest levels of the Russian government.