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Putin's endorsement of Bitcoin: “No one can stop it.”
By Davide Grammatica
According to Russian President Vladimir Putin, “no one can stop Bitcoin,” which is why the country's regulations will encourage its development
Bitcoin and Vladimir Putin
In the setting of the “Russia Calling” economic forum, organized by VTB Bank, Russian President Vladimir Putin spoke explicitly about Bitcoin and digital currencies, including in relation to the new tax regulations introduced in the country.
“We see interesting [economic and technological] developments supported by a variety of new instruments, for example Bitcoin,” Putin said. “And who can prohibit their use? No one.”
The new legislation, which recognizes Bitcoin as “property” under an experimental tax regime, exempts mining and crypto transactions from the relevant tax. In essence, after legalizing mining last August, cryptocurrencies now fall under a tax-advantaged regime. The rate on profits, however, is between 12 percent and 15 percent depending on certain parameters.
What is more significant, however, are the head of state’s words in favor of Bitcoin at a very complex time for the Russian economy. With the ruble suffering like never before, the attempt seems to be to integrate BTC as much as possible into the Russian economy, to exploit it prospectively in order to reduce dependence on traditional financial systems.
Russia's struggle against the dollar
Attempts to break free from the stranglehold of the U.S. dollar have been blatant in the meetings of the BRICS countries in recent months, and now it does not seem far-fetched, according to several analysts, that Bitcoin could also become a useful tool for this purpose.
Not to mention, then, the opportunities offered by Bitcoin to counter economic sanctions imposed by the West. In this sense, BTC can also become useful for a major geopolitical power such as Russia in the economic field, as an alternative tool to approach trade without relying on the dollar.
The development of mining in the country is one sign of this change in approach.
