The popular Russian business newspaper Vedomosti has published an article arguing that restrictive measures towards cryptocurrencies are at odds with the interests of the country.

The largest economies of the world – the EU, USA, China – can see the perspectives of cryptocurrency and are seeking to make use of bitcoin, writes the newspaper, while Russia restricts the development of digital money. Meanwhile, experts say that by 2050 more than 10% of the world’s GDP will be paid through cryptocurrencies, due to the growing number of freelancers and micro remittances, which makes it reasonable to have a mining centre on one’s own territory.

And that would be especially profitable for Russia, the article states. The more electricity a country can provide, the bigger mining computer cluster it can support. With Russia’s volume of electricity production it would be possible to create a large-scale bitcoin mining industry. The state could provide bitcoin miners and owners with soft legislative conditions and demand certain transparency of transactions in return, as it is being done in Europe and the USA.

Although the author uses the word “prohibition”, bitcoin is not officially prohibited in Russia. On 27 January 2014 the press service of the Bank of Russia issued a warning, which did not recommend individuals and organisations to use digital currencies. The warning emphasised that using such currencies could abet money laundering and financing terrorism. The Bank of Russia also warned against the high financial risks associated with cryptocurrencies.

Later the vice chairman of the Bank of Russia spoke in favour of “careful” approach to bitcoin. This autumn Russia’s Ministry of Finance worked out a draft law providing criminal punishment for mining and using bitcoins, but the law hasn’t been accepted by the Russian legislative bodies.

Andrew Levich