Russian President Vladimir Putin has recently recognized the strength of Bitcoin , stating that it cannot be banned. This is an important acknowledgment of cryptocurrency’s potential, especially with the ongoing economic sanctions against Russia.
At a forum in Moscow, he pointed out that Bitcoin is decentralized, meaning it can’t be controlled from the outside. He also talked about how it can serve as a model for future payment systems.
Putin spoke out against relying on traditional currencies such as the US dollar. He pointed out the dangers of political confiscation, especially after Western countries froze $300 billion in Russian reserves due to the Ukraine conflict.
Russia has made important changes to its crypto rules . They have removed the value-added tax (VAT) on crypto transactions and set a maximum 15% personal income tax on profits, similar to how securities are taxed.
These steps are meant to make things clear and support the use of cryptocurrency in the country. Some areas, like occupied parts of Ukraine and certain regions in Siberia, have mining restrictions. There are bans in places like Donetsk and Lugansk, and in Siberia, seasonal mining limits will start in December 2024 because of electricity shortages.
Putin’s government is looking into using crypto for foreign trade. A new law that allows digital assets for international transactions will start in September. The government is looking into state-backed crypto exchanges while regulations for cross-border payments are still being developed.
Putin’s comments show a change in strategy towards accepting digital currencies, making Russia an important part of the global cryptocurrency scene while managing energy issues and encouraging innovation.
