Putin legalized cryptocurrency before the Russian-Ukrainian war. Why?

First of all, we don't see any news about allowing cryptocurrency to be legalized before the war. Please don't pass it on. News about Russia's intention to legalize cryptocurrency soon came out. Since 218, there have been some intermittent news that Russia is ready to allow the legalization of cryptocurrency. Moreover, some people in Russia do suggest legalizing cryptocurrency.

For example, in January this year, the National Financial Association of Russia (NFA) and more than 2 entities active in the Russian financial market jointly appealed to revise the part on cryptocurrency investment in the Strategy for the Development of the Financial Market of the Russian Federation before 23. Especially recently, the conflict between Russia and Ukraine has further escalated. After Russia was kicked out of SWIFT, Russia's foreign trade was greatly affected, and many import and export products could not be settled normally. Under this background, Russia is also actively looking for some possible alternatives.

cryptocurrency mining is carried out especially in areas with sustainable surplus power generation, and relevant Russian departments are also formulating a regulatory system for cryptocurrency. But up to now, there is no law, regulation or policy in Russia that legalizes cryptocurrency, and everything is just in the proposal.

At present, there are also very loud voices against the legalization of cryptocurrency in Russia. For example, Elvira Nabiullina, governor of the Bank of Russia, has taken a tough stance on cryptocurrency and advocated a complete ban on cryptocurrency activities. The reason why many people oppose the legalization of cryptocurrencies is that it is difficult to supervise these cryptocurrencies and it will consume a lot of electricity.

More importantly, if cryptocurrency is allowed to be legalized, it will provide the best channel for some criminals to launder money, and it will be more difficult to supervise many criminal activities. It is precisely because of various considerations that there are few countries in the world that really legalize cryptocurrency at present.

However, under the current special situation, Russia has been subjected to financial sanctions by some European and American countries, especially after being kicked out of SWIFT, which has a great impact on Russia, and many commodities cannot be traded normally. In this special context, we do not rule out that it is indeed possible for Russia to allow the legalization of pilot cryptocurrencies in some areas, which can reduce the impact of being kicked out of SWIFT on Russia.

compared with SWIF, cryptocurrency can avoid this situation. at present, cryptocurrency is similar to bitcoin and adopts blockchain technology, which is a decentralized currency, that is, it is not controlled by any person, organization or government, and anyone can mine, and anyone can use bitcoin to conduct transactions, as long as you are online.

A cryptocurrency like Bitcoin can be said to be completely neutral. No matter what happens, even if there is a war between the two sides, no one can stop the two sides from using Bitcoin, which can effectively avoid the financial system being sanctioned by others in the event of a war, resulting in paralysis of transactions.

if a country only has a large number of cryptocurrencies such as bitcoin, even if it is kicked out of SWIFT, they can still trade goods through this cryptocurrency. So after the Russian-Ukrainian war, I believe that many countries will reconsider the status of cryptocurrency in the future.