As stated by Russian Rating agency “Cryptocurrency not yet usable as money”
A report from Russian Analytic Credit Rating Agency (ARCA) presented Thursday, June 7, states that cryptocurrency cannot be used as a means of payment yet.
According to ARCA, cryptocurrency “as of now does not fully perform any of the functions of money” as the exchange rate volatility is too high -- comparable with the volatility of food prices -- to allow it to be efficient as payment.
ARCA writes that a comparison of crypto with common currencies with “their own intrinsic value” highlights how cryptocurrency’s market value is “formed mainly on expectations of investors' readiness to sell it in the future at a higher price.”
The factors that could increase the use of cryptocurrency, according to ARCA, including the “toughening of sanctions against the backdrop of growing foreign policy and external economic tensions.”
Yesterday, during his annual live question and answer with the public, Russian president Vladimir Putin spoke ambiguously but mainly negatively about cryptocurrency.
However, Putin did note that Russia will look into how they can use cryptocurrency to “avoid any restrictions in the field of international financial activity,” which could have been a reference to avoiding the Western sanctions currently imposed on the country.
Russia’s major crypto and blockchain-related bill, “On Digital Financial Assets,” was almost approved during its first reading at the end of May in the State Duma. The final version of the crypto regulation legislation is to be passed by July 1.
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