Russia has been in the news recently around their desecration of the world of cryptocurrency. To buy goods and services within Russia, the state has made it very clear that you need to pay in rubles.
Ksenia Yudaeva, the first deputy governor of the Central Bank of Russia stated that “the ruble is the only transactional currency allowed in Russia as far as we are concerned. We are very conservative on this issue of initial coin offerings and crypto. There has been a lot of froth in this industry and it reminds me of the early days just after the fall of the Soviet Union with promises of big gains coming from nothing. We are very skeptical.”
The comments from Yudaeva are not a surprise as the Russian Central Bank has come down on cryptocurrency several times as of recent. This is either through downgrading bitcoin or ethereum or other tokens associated with cryptocurrency and initial coin offerings. The country has made it very clear that they do not support the use of these methods of raising money and will continue to not support them.
One Russian blockchain exchange is working with the National Settlement Depositary to try and test cryptocurrency trading on the Russian trading platform. Various Russian hedge funds have already begun to get involved and treat ICOs like they are the new venture capital holdings, which they are. The amount of money raised from ICOs has reportedly become more than the money raised with venture capital this year alone.
Willem Buiter, the global chief economist at Citi in New York stated that “ICOs and cryptocurrencies are just regulatory arbitrage. It’s cute. But the regulators are catching up to it now.”
Hopefully, the potential of cryptocurrency can become fully realized by these large nations, and find its way in the world economy.