Russian President Vladimir Putin has stated that by definition, Russia cannot have its own digital currency, just as any other country cannot have its own cryptocurrency. Putin declared this on Thursday, June 7, during his annual Q&A session.

According to local news outlet TASS on Thursday, June 7, the Russian president claimed:

“Russia cannot have its cryptocurrency inherently, just like no other can have its cryptocurrency.”

Putin continued by saying:

“This is because when we are talking about cryptocurrency, this is what goes beyond national borders.”

According to TASS, the Russian head of state notably said that digital currency should not be the medium of payment and hoarding. TASS reported that Putin further stated:

“The Central Bank believes that cryptocurrencies cannot be means of payments and settlements, cannot be means of hoarding and are not secured by anything.”

Putin also noted that “All this proves that we should treat them by rule and line, cautiously.”

Rumors had been for the past few years that Russia will be issuing its own cryptocurrency. The project, which had been initially dubbed as CryptoRuble, even saw Putin met with Ethereum creator Vitalik Buterin to talk about Blockchain technology. Despite that, present developments suggest that plans to issue the CryptoRuble have been scrapped altogether.

The Future of Bitcoin in Russia

Even though the CryptoRuble project will no longer push through, the adoption of Bitcoin remains unhindered in Russia. While there appears to be a number of opposition to the concept of Bitcoin, in general, the threat remains to be manageable. The country is expected to finalize regulations on digital currencies and ICOs albeit the Russian central bank has assumed a negative stance towards cryptocurrencies.

The citizens of Russia persist on utilizing cryptocurrency, despite the negative statements issued against it by various heads of states, Putin included, in the past few months. Even one of the largest payment service firms in Russia has welcomed Bitcoin into its helm. In September 2016, WebMoney allowed Bitcoin support in its system.

Still, the popularity of Bitcoin and other cryptocurrencies in the country appears to be on the rise. As earlier reported by Coinwire, two Russian scientists were arrested earlier this year after having been discovered to be mining Bitcoin at work. The scientists were caught using their laboratory’s supercomputers to mine Bitcoin.

Putin: “Russia Cannot Have Its Cryptocurrency”