Cryptocurrency has been under a lot of scrutiny and question even since its inception. With very contrasting views emerging on the system, it is no surprise that some people are not very fond of the system. It seems like the biggest country in the world stands on the other side as well. Russia has recently proposed a ban on all cryptocurrencies. While this is certainly not the end of the world, it is the beginning of an issue. Pavel Durov, the CEO and founder of Telegram took to this news and expressed his worries about the supposed ban.
Durov took to his own production, Telegram, and shared his views on Saturday. According to him, banning cryptocurrencies would slow down the development of blockchain technologies. This would not be limited to one corner of the world either and in all probability affect the whole IT sector. He said that by stopping the mining of cryptocurrency and any crypto-related transaction, there would be an inevitable outflow of IT specialists. Not only that, the ban could destroy some of the important sectors in the high-tech economy.
In the past week, the Central Bank of Russia is the one who raised the ban on cryptocurrency. According to them, the issuance, circulation, exchange, or trade of cryptocurrency or stablecoins must be prohibited. In fact, they even called for the ban of organizations that use such operations on Russian soil. Once the law is passed, only the ownership of crypto would be possible In Russia. Any kind of work surrounding Cryptocurrency would automatically come to a halt.
As Durov noted, no developed country has so far banned cryptocurrency. The Bank, in their statement, released how the cryptocurrency is volatile for the financial wellbeing of the people of the country. Furthermore, the usage of cryptocurrency in illegal activities is rampant. The bank believes that the growth of cryptocurrency is based on speculative demand. In fact, the price could fall anytime and this could lead to a huge amount of loss for the investors.
Back in 2020, Russia had briefly recognized Cryptocurrency’s credibility. However, soon after, this credibility was taken back. There was an imposition in its usage and any transaction was banned. The ban that the Central bank of Russia is pushing for could further limit the usage of cryptocurrency in Russia.
According to Durov, the cryptocurrency is responsible for the improvement of inefficiency and safety of several human-based activities. This includes finances as well as art. Unlike Russia, its neighbors have accepted advanced laws and made changes. Countries like Ukraine are striving to get better in technolog8cal and economical progress.
By stopping the flow of Cryptocurrency in Russia, the country would be making a huge mistake. While the regulatory drive is normal for the state, an outright ban on crypto would be an overarching issue for the coming time.
According to Durov, this position could potentially stop all legal Russian projects. It is yet up to the investors and financial experts to imagine how this would imagine the economic and technological relationship between Russia and the rest of the world.