The Kremlin: the legalization of bitcoin is harmful to the financial system. Russia, according to Dmitry Peskov, Russian President’s press secretary, is not ready to follow El Salvador’s lead.
The Kremlin stressed on Tuesday, September 7, that there is no reason for this at the moment.
Russia is not ready to recognize bitcoin as an official means of payment. Equating cryptocurrencies with monetary instruments “can bring nothing but harm to the financial and economic system.”
For the time being, though, Peskov added, “It is clear that Russia is not ready for such moves, so far, there is not the slightest reason to take such steps”.
The Central Bank: point of view
In July, the Deputy Governor of the Bank of Russia, Alexey Zabotkin, stressed that large economies will not legalize bitcoin. Zabotkin recalled that from the point of view of the Central Bank, cryptocurrencies belong to monetary surrogates. And in the territory of the Russian Federation, the only means of payment is the Russian ruble. “I don’t think that any major economy will follow this path,” he added.
El Salvador’s adoption of bitcoin
Recall that El Salvador was the first in the world to recognize Bitcoin as an official currency along with the US dollar. The relevant law came into force there on September 7. Salvador has already bought 400 bitcoins. The Financial Commission of the Legislative Assembly of El Salvador approved a $150 million trust fund to support a plan to legalize bitcoin. Moreover, Salvadorans can get $ 30 in bitcoins to their electronic wallet. Thus, since Tuesday, prices in the country can be set in bitcoins, and taxes can also be paid in cryptocurrency. Bitcoin exchange is not subject to capital gains tax.
According to the President of El Salvador, Nayib Bukele, the legalization of bitcoin in the short term will create new jobs and provide access to financial services to thousands of people outside the formal economy.
In addition, the most popular cryptocurrency’s price rose, reaching 52.5 thousand dollars per coin on September 7 morning, before falling back to 51 thousand dollars after a few hours.