Faced with Central Bank Calls for Crypto Ban, Russian President Vladimir Putin Offers Hope to Industry

Russian President Vladimir Putin said that in terms of mining, the risks of cryptocurrencies should be offset by the country's "competitive advantage", which has excess electricity and "trained personnel."

Russian President Vladimir Putin has called for a consensus between the country’s government and the central bank, as the latter recently called for an outright ban on cryptocurrencies.

Speaking in a video conference with government ministers on Wednesday, Putin demanded that discussions between his government and the Bank of Russia form some "unanimous consensus" in the near future.

In a report last week, Russia’s central bank called for a complete ban on cryptocurrencies, citing their volatility and their use for illicit activities.

The Bank of Russia’s call for a cryptocurrency ban has been opposed by the country’s finance ministry on the grounds that it would undermine the industry’s technological development.

"Central banks have their own positions. This is due to the fact that, given factors such as the high volatility of cryptocurrencies, there is a certain risk in the expansion of such activities, first and foremost for the citizens of the country," Putin said.

However, the Russian head of state also said this risk should be offset by “certain competitive advantages” Russia has in mining, given its excess electricity and “trained personnel.”

As of last August, Russia was the third-largest bitcoin mining country in the world, after the United States and China, according to the Cambridge Centre for Alternative Finance.