Business

Erik Gibbs

Russia denies claim it will purchase $50 billion in crypto

Last week, an individual with close ties to the Russian government asserted that the country was contemplating reducing its dependence on the U.S. dollar in favor of cryptocurrency. Vladislav Ginko, a member of the Russian Residential Academy of National Economy and Public Adminsitration, asserted that Russia could possibly purchase a significant supply of Bitcoin Core (BTC) to help with the transition, adding that the move could take place within “a matter of weeks.” Now, the chair of the government’s crypto group, Elina Sidorenko, has responded, denying the rumors and calling them absurd.

In speaking with the Russian-language news site ForkLog, Sidorenko said, “This state has no common sense. The Russian Federation – like any other country in the world – is simply not ready to combine its traditional financial system with cryptocurrencies.”

Sidorenko apparently hasn’t heard the news about the Marshall Islands.

The Duma representative added, “And to say that this idea can be implemented in Russia for at least the next 30 years is unlikely.”

Ginko had asserted in a Twitter post that Russia would have no choice but to invest in cryptocurrencies. He said that the country was going to purchase as much as $10 billion in BTC in order to circumvent sanctions introduced by the U.S. and asserted that this would be the only way the country would be able to survive. He stated, “The damage from US sanctions can be mitigated only through the use of bitcoin. The Russian elite is forced to dump US assets and dollars and invest huge amounts of money in bitcoin.”

Sidorenko added, “Even if Russia wants to place its cryptocurrency assets now, it simply cannot do this,” Sidorenko says. “We do not have any mechanisms that would allow us to introduce a system: where these assets would be stored, which authorities would be responsible for it, which would be responsible for abuses and stuff.

“Such a model under the current criminal, financial and civil legislation does not fit. All over the world, cryptocurrency is considered a high-risk asset. And a similar model, naturally, would not suit anyone.”

Perhaps the cold Russia winter has played tricks on Ginko and created thoughts that didn’t exist. It wouldn’t be the first time – he also exclaimed on Twitter a week ago that Bernie Madoff, the man behind one of the largest Ponzi schemes in history, is “the true Satoshi Nakamoto.”

Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as SegWitCoin BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins. Altcoins, which value privacy, anonymity, and distance from government intervention, are referenced as dark coins.

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