Can Cryptocurrencies Fix the Problems Russia is Facing?

Even if the Russian government might be anti-cryptocurrencies, they do have to look at their current economic situation and make decisions from there.

Their economy may have been significantly affected by the sanctions that were imposed upon them by the United States, the European Union, Japan, and others.

The sanctions were imposed on the Russian government for a variety of reasons, there were a few that were imposed by the U.S in the prior years and then fairly recently because of the actions that the country took in the Ukraine and Crimea situation.

The people being targeted by these sanctions:

  • People that are known to be human rights abusers
  • Parties that seek to interfere and meddle with the cybersecurity of the United States
  • Those who help fund the energy export operations
  • Those who work with the Russian Defense and intelligence networks

Now, it is not certain to how large of an extent they have been affected, but their economy does show signs of struggle.

It is certainly true that citizens in Russia have seen a decline in their real disposable incomes month on month for the past four months.

Real wages have also declined and has seen a substantial difference over the years.

The Russian government has to make certain that they are able to reverse the current economic situation and improve the lives of their citizens. One of the operations that they are looking into conducting is the act of integrating cryptocurrencies to get around these economic sanctions.

One Putin’s advisors has recently gone on record to suggest the idea of using the new concept of cryptocurrencies to stimulate the aspects of the economy that have been strangled by the sanctions.

Sergey Glazyev

Sergey Glazyev, who was recently in an official meeting with an agenda of discussing the matter of cryptocurrencies and how to address them legally, expressed his views on the matter.

He stated that there is an “objective need” for the utilization of cryptocurrencies. He believes, probably correctly, that there is no room for biased feelings on the matter and that one must take a neutral stance and see how it can be a benefit to the nation. Decisions have to be made through the prism of the current situation that is affecting all, not according to the individual beliefs of those in presidential administration or other political leaders. The advisor is also one of those who is interested in moving forward with the crypto-ruble, a proposed national cryptocurrency.

The advisor is a strong supporter of economic independence. He has stated that he thinks the only way to be on the offensive in regards to US aggression is to cut off the dependence on the dollar.

He stated to TASS:

“The more aggressive the Americans are, the sooner they will see the final collapse of the dollar and by getting rid of the dollar this would be the only way for victims of American aggression to stop this onslaught. As soon as we and China dump the dollar, it will be the end of the US’ military might,”

The Russian advisor is making these statements as the government is slowly leading up to the time when they will be releasing their official legislation on the virtual currency and crypto world affairs in general in July of next year.

This sort of move to bypass sanctions has not been publicly endorsed before by any prominent Russian official, making this a surprising development in the crypto-Russian relationship.

Neighboring countries are immersing themselves in the technology

Meanwhile, Ukraine is seeking to fully legitimize cryptocurrencies in their nation as noted through their legislative leaders and seeking to utilize the market to bolster their economic growth. Then we have Abkhazia, an autonomous state, who is seeking to create their own national cryptocurrency and have it as the legal form of payment over the course of a few years.

By | 2017-12-18T16:11:44+00:00 December 17th, 2017|Cryptocurrency News|0 Comments

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