Head of Russia's Second Largest Financial institution Compares Crypto Mining to Counterfeiting | CryptoTechBuzz
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Head of Russia’s Second Largest Financial institution Compares Crypto Mining to Counterfeiting

Andrey Kostin — the top of VTB, Russia’s second-largest financial institution — has in contrast cryptocurrency mining with counterfeiting, main Russian information company TASS experiences Monday, Feb. four.

Whereas talking to college students who participated in an academic contest organized by main Russian tech company Yandex, Kostin mentioned:

“I’m not a giant fan of the crypto ruble. To me, it is a form of counterfeiting. An individual who’s mining [cryptocurrencies] is just like somebody who’s printing cash. In the course of the preliminary euphoria, everybody thought that all the things may be paid in crypto beginning tomorrow, nevertheless it hasn’t occurred to date.”

Kostin believes there will probably be a comparatively small market area of interest for cryptocurrencies within the foreseeable future, for as the worldwide monetary trade is getting increasingly clear, offshore holdings are steadily disappearing.

Furthermore, the banker believes that there isn’t any related solution to regulate the crypto space in the identical approach that the standard markets are regulated. If cryptocurrencies grow to be dominant on the monetary markets, it may be harmful, Kostin concluded.

Nonetheless, the board chairman at VTB, Olga Dergunova, doesn’t share Kostin’s stance. In June 2018, Dergunova claimed that VTB was doubtlessly able to work with digital belongings. Furthermore, she mentioned that they may very well be handled on an equal foundation with fiat within the close to future.

As Cointelegraph beforehand reported, the demand for cryptocurrencies in Russia is allegedly very excessive, however the banks usually are not in a position to meet it as a result of lack of clearly outlined rules. Throughout a closed-door assembly in September 2018, a number of Russian banks together with Sberbank, Alfa-Financial institution and VTB reportedly expressed their curiosity in crypto.

Russia’s cryptocurrency and blockchain laws, which had handed its first studying stage in March 2018, has since been despatched again for additional edits. On the finish of January, the chairman of the higher home of the nation’s parliament urged legislators to expedite their work on the digital economic system payments.

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