Though the whole sum of cryptocurrencies continues to be under $100 billion, the idea of challenging America as the authority and leader of the world’s chief reserve currency interests Putin who recently requested the BRICS nations to seize the excessive control of the limited number of reserve currencies. Another reason why Russia is pondering the idea of exercising cryptocurrencies is the that Kremlin which is the heart of Moscow in Russia is powerful enough to attract the large cashflow being transferred into blockchain projects around the world. It also wants to let Russia into the open mining industry at which point anyone would be able to claim newly released Bitcoins.
The Russian Central Bank is also studying the use of cryptocurrency to help control the extremely corrupt banking system, with questionable financers making loans to false companies, consequently closing down and leaving the government to refund investors’ money. Cryptocurrencies can be traced and would be ideal to keep control of where the bank’s money is going. Virtual currencies have also appealed to the Russian government and have global law enforcement agencies worried that it’s being used as an instrument in money laundering. Different from money, all crypto currency trades are recorded. This makes it easy to track and monitor trades between businesses.
The problem then lies in the rights of virtual money which is not necessarily available to the users or investors. Digital currency can be anonymous by putting it through a “tumbler” a service that changes the user’s identity by exchanging tokens with ones belonging to other users also looking for anonymity. Crypto currencies may not be greatly doubtful but what is clear is that there is a crossover between hacking and the crypto currency world. Russia with its unique connection of computer prodigy and money laundering knowledge is set to develop new cryptocurrency world’s wild East.
After local media in Russia had reported that the Russian Parliament could make Bitcoin legal in 2018, Alexei Moiseev, Deputy Finance Minister announced they might begin restricting its use. Moiseev has said that Russian authorities should treat cryptocurrencies as high-level financial assets and prohibit their use and trade to experienced investors only. Moiseev went on to say that Bitcoin investing is dangerous especially for ordinary people and that it’s the government’s duty to protect its people.