Russia’s President, Vladimir Putin, has subtly expressed his opinion concerning cryptocurrencies. Putin made a statement that signaled his readiness to accept cryptocurrencies for financial transactions in Russia in the future. Speaking during an interview with CNBC, Putin said that cryptocurrencies have a right to exist and to be used as a medium of transactional payment.
Putin however mentioned that it is too soon to begin talks about accepting cryptocurrencies as payment for oil, Russia’s main export commodity.
The Road to Cryptocurrency Adoption
Cryptocurrencies have been backed for adoption by many countries in the future given the wide rate of acceptance, the increasing crypto transaction volume, and the growing number of DeFi projects that are sweeping across the world. South American countries are leading the global acceptance of bitcoin; El Salvador has announced the adoption of bitcoin as a legal tender.
European and Asian countries are also in the news concerning crypto adoption although for other reasons. Europe and Asia have been at the forefront of the campaign for cryptocurrency regulation that will see governments around the world wield more influence over the innovative crypto industry. China, for example, has banned the trading of all cryptocurrencies within its domain and is reportedly making a move to gradually phase out crypto mining across the country.
Top financial experts have expressed diverse opinions about the adoption of cryptocurrencies, but one thing they all agree on is that crypto adoption cannot be avoided, only delayed. The push for countries to adopt cryptocurrencies is now intense.
Key Talking Points for Cryptocurrency Adoption
Central Banks around the world have called for deeper studies into the potential risks and effects of cryptocurrencies on the economy. The central banks have also made it a responsibility to warn citizens about adopting cryptocurrencies due to their volatility. The Central Bank of Russia, for example, advised citizens that due to the extreme volatility of cryptos, they cannot be deployed for domestic payments and similar transactions. Russia might also be willing to move from its oil trade from the US Dollar-backed to explore cryptocurrency payments.
Bitcoin Price Movement
Bitcoin crossed the $50,000 resistance zone in September after months of a meltdown that began in May. Bitcoin hit low prices, touching $30,000 in July before an uptrend began. The world’s first token currently trades at around $57,000 as of the time of writing.
In a continuous upward move that has disappointed bears, bitcoin has gained 5% to hit high levels; another 10% gain from the current price will see it hit an all-time high. Bullish traders have predicted a $100,000 price for bitcoin by the end of the year 2021.
News like that of Putin expressing his opinion of cryptocurrencies will have a positive impact on the price of bitcoins and altcoins. Coming in the midst of increased government crackdown and calls for regulations, Putin’s statement that cryptocurrencies have a right to exist will boost the confidence of investors that there will be a flurry of adoptions in the coming months.