Senior Russian Parliament Member Warns Against Crypto Asset Use, Alleges They Can Ruin Governments

  • Nikolai Arefiev, a Parliament member of the Communist Party in Russia, says crypto use could threaten governments.
  • Russia has still not implemented any regulations for the crypto industry, as it is not a priority.

The traditional market has historically been against the use of cryptocurrency since it was born. After all, cryptocurrency comes with a set of risks that fiat currency does not; it lacks government backing and cannot be insured with the same benefits, due to the doubt that it functions as a valid form of payment still. In Russia, the regulations are still evolving, but a senior official with the State Duma is now declaring cryptocurrency a major risk to the current governments, according to Russia’s Rambler media agency, as of May 20th.

The member of the Communist Party, Nikolai Arefiev, is also the vice-chairman of the committee on economic policy, innovative development, and entrepreneurship for the State Duma. He is stating now that cryptocurrencies were not a development to help with the economies, but a way for offshore assets to remain hidden from the government. If Bitcoin had been released to the public 14 years sooner, Russia would have lost all of its offshore capital, effectively destroying the nation, as he sees it.

Furthermore, the official claims that the government is playing a useless role in determining any part of the operations of the industry. He appears to look positively upon the jurisdictions that have already chosen to ban the assets, as Arefiev sees this decision as the easiest way to protect the capital that they hold.

Along with his comments on cryptocurrency, Arefiev addressed the public on speculative capital, saying that the global economy is 90% made up of this type of capital. Bitcoin, to the official, is one of the speculative schemes that is posing a threat to the world’s economy, in that it does not produce anything new. Instead, it creates “money from money.” These aggressive stances from Arefiev are, at the very least, understandable, since Russia has not set any certain regulations or bans on the cryptocurrency industry locally yet.

The largest bank in Russia, Sberbank, recently asked that their customers provide details about the income that they make from interacting with cryptocurrency. Dmitry Medvedev, the Russian prime minister and former president, stated that the delays in regulating cryptocurrency locally are primarily due to the lack of priority that cryptocurrency has. He went as far as to state that cryptocurrencies “have lost their popularity.”

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