Mother Russia has no intention to acknowledge Bitcoin by approving any legal tender, says Secretary for the Russian President’s press after coming to know that Bitcoin has become the national currency of El-Salvador under the legal tender. Dmitry Peskov, while talking to the press said that Russia does not think that there is anything good for the country in accepting Bitcoin under any so-called “legal tender”. Since there are no benefits of such an initiative, therefore, the state is not interested.
Dmitry Peskov is an official spokesperson for the Russian premier on the matters of dealing with the local press and media. He was asked to comment on behalf of Vladimir Putin on Bitcoin’s induction as El-Salvador’s official national currency apart from the USD.
He said firstly that El-Salvador is an independent state with its own setup and therefore Russia has no say in the matter. If Bitcoin has been made the country’s official currency, then the El-Salvadoran government has the right to do whatever they please. Russia cannot comment on that except that it can only wish the El-Salvadoran government a “good luck”.
Peskov was then asked what is the Russian President’s plan with regard to Bitcoin. Is he interested in acknowledging Bitcoin as legal tender and makes it a secondary national currency? Peskov responded that first of all there is no such concept of “secondary national currency”. Every country has its own unique singular national currency and Russia similarly has one. However, for international trade or exchange, countries exchange fiats however that too relies on official national currencies. So without a doubt, Russia is not at all interested in allowing Bitcoin or any other virtual currency any legal tender. Nor are there any guaranteed benefits of doing so because the whole world knows that cryptocurrencies are highly volatile.
He claimed that the President’s view on this subject is also the same and there is no such intention from any government quarters. Peskov explained that there is no comparison between a virtual asset and traditional instruments. However, if untested instruments are allowed to merge within the financial system, then the financial system will collapse. Allowing the use of digital currency as national currency would not bring stability but a further harm to the economy, said Peskov.
Clearly therefore Bitcoin legal tender is not something which could distract Russian Government’s attention. Not today and not in the near future, Russian Federation is at all interested in replicating the initiative of converting a virtual currency into a national currency.
On 7th of September, 2021, El-Salvador became the first state acknowledging Bitcoin as its national currency. Crypto experts from the international community predicted thereafter that many countries will feel the pressure of adopting El-Salvador’s strategy. This is why the local Russian press was posing such questions to the spokesperson of President Vladimir Putin.