German Klimenko, the Russian Presidential Advisor on the Internet, has made a stand against the legalisation of cryptocurrencies. He calls the reports about bitcoin legalised in other countries “a fiction”.

Klimenko made this statement speaking on the radio Russian News Service when the host asked him to comment on the words of a parliamentarian Dmitry Marinichev, who on 26 March urged not to pass a bill banning cryptocurrencies:

“The “right to oblivion” or cryptocurrency ban are the worst things they could do. Our party will work to create the law on cyberspace in Russia, to stimulate infrastructure development and attract smart people from all over the world,” said Marinichev, a member of the libertarian Party of Growth.

Responding to this statement, Mr Klimenko expressed his disagreement and even rejected the fact that bitcoin has been officially acknowledged as a means of payment anywhere in the world.

“Excuse me, but the cryptocurrency is an illegal means of payment in all countries of the world. As of now, all legends that it has been allowed anywhere are but a fiction.”

The Putin’s advisor did not stop at that but carried on, turning his criticism against bitcoin users and developers:

“We must give their due to those who created bitcoin and who coined the term “cryptocurrency”, a meme-virus going straight into the head,” Klimenko declared.

Meanwhile, Russian bitcoin users are not quite surprised by the attack (if only by his very peculiar treatment of facts) as Klimenko is well known for his negative attitude towards the cryptocurrency. Previously, he compared the bitcoin issuance to counterfeiting. In his recent interview, he claimed that cryptocurrencies undermine the basic principles of an independent state, namely control over its borders and its own monetary unit.

A similar view is shared by other representatives of Russian establishment. For example, the Investigative Committee proposes to ban cryptocurrencies as a speculative financial instrument that has significant “market failure risks”. The Russian Finance Ministry has developed a draft law providing punishment of up to seven years in prison for cryptocurrency issuance and turnover.

At the same time, another part of Russian ruling elite stands in favour of fintech innovations. Last year, the head of Sberbank German Gref revealed his interest in the cryptocurrency and even confessed to having bought some bitcoins, complaining that after the purchase their price had fallen.

Still, the favour of Russian authorities, however elusive, lies certainly not with the cryptocurrency, but with the technology behind it. The Russian Central Bank, as well as the Finance Ministry and Sberbank, call for further development and research of blockchain for the benefits of the country’s governance and financial system.

Elena Platonova