Nikolay Arefyev, Russia’s Deputy Chairman of the Committee on Economic Policy, Innovative Development, and Entrepreneurship, is warning that Bitcoin and crypto are on a trajectory to destroy Russia by allowing enterprises to offshore their funds and drain major amounts of capital from the country, reports Russian news outlet Rambler.
Speaking at a press conference on Monday, Arefyev said the implications are calamitous for Russia’s $1.52 trillion economy.
“If cryptocurrency worked, we would be completely ruined today because all financial flows would be taken out of Russia and Russia would end because cryptocurrencies were created to ensure that the state does not control the flow of capital.”
Arefyev also called Bitcoin a “useless” tool for speculation. He supports a complete crypto ban, and echoes sentiments expressed by US Congressman Brad Sherman who recently stated that the use of cryptocurrencies should be prohibited.
Likewise, Elina Sidorenko, Duma’s cryptocurrency group chair, also debunked earlier reports that Russia is secretly buying or planning to buy $10 billion in Bitcoin to lessen the impact of US sanctions. According to Sidorenko,
“The Russian Federation, like any other country in the world, is simply not prepared to merge its traditional financial system with cryptocurrencies.”
However, according to a report by local news agency TASS, Russia is exploring the creation of a gold-backed cryptocurrency for cross-border settlements.
During discussions about cross-border finance at the State Duma on Thursday, Elvira Nabiullina, governor of the Bank of Russia, suggested that Russia is considering proposals designed to implement the technology.
According to Nabiullina,
“As far as settlements are concerned, we will consider your suggestion regarding what a cryptocurrency backed by gold would look like [in this setup] … In my view,