Cryptocurrencies in Russia

President Vladimir Putin’s assistant said cryptocurrencies may help Russian banks avoid international sanctions, according to Rambler News Service report.

Digital currencies show “objective need” for Russia against sanctions. This view gave  Sergei Glazyev at a meeting of the presidential administration. He also said, that the government could use cryptocurrencies to make and receive payments around the world for “sensitive” services.

Russian officials have grown increasingly nervous about a possible expansion of US sanctions early next year in retaliation for alleged Kremlin meddling in the 2016 presidential election, which Russia has denied. Virtual currencies such as bitcoin, which has soared in price this year amid a rush by investors to buy the instrument, could help bypass any such US measures because they allow users to remain anonymous.

A decree was signed by Russian Prime Minister Dmitry Medvedev, which allows the government to classify purchases by the Defence Ministry, Federal Security Service and Foreign Intelligence Service as state secrets.

Glazyev, who’s himself under US and European Union sanctions for his role in the 2014 annexation of Crimea from Ukraine, isn’t always in the mainstream of Kremlin policy making and has suggested in the past that Russia should liquidate its dollar reserves. He advocated creating a digital ruble based on the blockchain technology behind cryptocurrencies at Tuesday’s meeting, according to Rambler.

Glazyev isn’t always agree with government policy. So he has suggested in the past that Russia should liquidate its dollar reserves. According to Rambler, he recommended to create a digital ruble based on the blockchain technology at Tuesday’s meeting.