- Former Russian president Dmitry Medvedev has issued a warning over Russia’s crypto plans
- Medvedev warned that an outright ban would only send crypto underground where it would be harder to monitor
- The Russian central bank has recently suggested a ban on crypto use and mining in the country
Dmitry Medvedev, the former president and prime minister of Russia, has raised doubts about the viability of the Central Bank of Russia’s plans to ban cryptocurrency use in the country. In noting that banning something usually has the opposite effect, Medvedev joins a growing chorus of disapproval over the plans, which others have said would leave Russia on the sidelines of the rapidly expanding digital asset ecosystem.
Medvedev Warns that Crypto Ban Will Backfire
Medvedev, who now serves as deputy chairman of the Security Council of the Russian Federation, told Russian media outlets recently that while the central bank had its own agenda with regard to cryptocurrencies, issuing a blanket ban would be detrimental as it only drives the activity underground.
Indeed, with some 17 million blockchain wallets being owned by Russian citizens, it is clear that it is too late to ban the sector and hope for an effective outcome.
Russia Ban Opposition Growing
Medvedev isn’t the only high-ranking individual to have criticized the Central Bank of Russia’s policy, with The Russian Association for Electronic Communications (RAEC) pointing out recently that a ban would not solve the bank’s concerns over fraud and other illegal activity, but would instead lead to it being harder to detect, as well as having a negative effect on the talent pool in the country:
The ban on the circulation of cryptocurrencies will leave Russia on the sidelines of the development of one of the fastest growing digital markets at the moment, which will significantly slow down the innovative development of the country.
Similar concerns have also been raised by other countries working on cryptocurrency regulation, including the U.S.
