Vladimir Putin: Bitcoin can’t be stopped

Russian President Vladimir Putin has reiterated his support for Bitcoin and digital assets as the European powerhouse moves closer to adopting more crypto.

“No one can stop Bitcoin (BTC),” Russian President Vladimir Putin said at the World Trade Center in Moscow on Wednesday, December 4, according to Bloomberg and local news agency TASS.

President Putin also stated that BTC and digital assets will continue to develop in many countries, including Russia. He added that Russia is making progress in the development of digital payment systems to support industries and reduce operating costs.

Russia’s approach to cryptocurrencies has changed over the years. In late November, President Putin recognized cryptocurrency as property with a new tax law. The country legalized BTC and crypto mining in August, allowing elite institutions to tap into digital currencies using computing power on Russian soil.

Native cryptocurrency adoption has also increased amid policy revisions to meet the demands of the growing blockchain paradigm. According to the Central Bank of Russia, citizens hold approximately $7 billion in assets on crypto exchanges.

A study by Bitkan revealed that approximately 14.6 million people, making up about 10% of the Russian population, own digital currency. Another survey found that 20% of the country had interacted with cryptocurrencies before.

Despite the changes, the use of cryptocurrency for payments is still prohibited in Russia. However, the Russian Parliament is considering using digital currencies for cross-border trade.

Deputy Minister of Energy Evgeny Grabchak said that the Kremlin will ban BTC mining in certain regions to reduce energy shortages due to the geopolitical conflict with Ukraine and rapidly expanding Bitcoin mining operations.

Russia’s plans to offer its citizens a central bank digital currency may also face delays. Olga Skorobogatova, a key official on Russia’s CBDC, resigned in November. Shortly thereafter, the Ministry of Industry recommended that a possible CBDC be rolled out within two years to alleviate infrastructure concerns.