The Significance of the Russian Cryptocurrency Journey

Russia's Legislative House, the Kremlin, Moscow, Russia.

Since the days of the Cold War, Russia (then USSR) has been a force to be reckoned with. It did, and of late continues to, consistently challenge the systems of global hegemony. As such, Russia commands the respect of much of the world, as it further challenges the West’s historical dominance. Russian President Vladimir Putin has involved the country in conflicts all over the world, most notably in Syria and the Crimea. Its influence also still garners the attention of much of Asia, Eastern Europe, and the Middle East. What then, is the significance of Russia’s recent legalisation of cryptocurrency in July 2020? Cryptolydian analyses how Russia’s recent attitudes could affect other countries in its sphere of influence.

Legalisation of cryptocurrency

In July 2020, Russia legalised cryptocurrencies, categorising them as proprietary things worthy of the legal protections granted to other forms of property and assets. China has since also furthered its cryptocurrency legislation, resulting in further protections for digital assets.

Although it was a big step for Russia, the law has been criticised by numerous legal experts, including the Russian Ministry of Justice, reports Coindesk.

Russia’s place in the world

Putin has involved Russia in numerous areas of the world’s politics. Russia exerts significant influence over its neighbours, competitors, and on the global politik as a whole.

Thus, if Russia takes a softer approach to digital currency, it can be assumed many countries under its influence would follow suit, creating a boom in the exchange and trade of cryptocurrency. The individual states in the developmental organisation BRICS (of which Russia is party to) have issued further announcements of extending legislative provisions and legal protections to cryptocurrency of late.

A huge potential market also exists in the former Soviet republics of Central Asia, which have rich reserves of minerals and natural resources. Could these countries too follow the lead of oil-rich Venezuela and issue their own resource-backed digital currencies? The world watches closely as Putin’s Russia softens its approach to cryptocurrency.

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Raïs Tarek 87 Articles
Journalist and lawyer, with a passion for global politics, economics and current affairs.