In the latest development, the president of Russia - Vladimir Putin chose not to side with the decision of the Bank of Russia that wants to restrict mining and cryptocurrency trading in the country.
Clearly, crypto has advantages and a bright future despite bringing negative impacts such as: unexpected risks and price uncertainty:
"We have advantages in certain aspects of competitiveness in this country, especially crypto mining. I mean, having surplus electricity and trained troops. ”
As a result, Putin urged the central bank to reach an agreement with the government to reconsider the decision announced over the course of the day.
As reported by Intraday, the Bank of Russia rejects the presence of crypto in the country because the industry is exposed to various risks including high volatility, and its use in illegal activities.
The decision taken by the Russian central bank has invited the severity of the crypto market which is already critical due to The Fed’s announcement.
However, the Russian Ministry of Finance did not agree with the decision of the central bank and proposed the enactment of legislation on cryptocurrencies.
One of the factors to this contradiction is that the government finds that crypto mining contributes to the country's economic growth.
Facts to know - Russia is in third place with a hashrate rate of 11% after the United States (US), 35%; Kazakhstan, 18%.
Not only that, Russia has an annual record of crypto transactions worth about $ 5 billion.
At the time of writing, the crypto market is seen to be positively dominated by Bitcoin (BTC) which recorded a price increase of 4%, trading at $ 37,362.
