Russian second-richest man says private cryptocurrencies are “unreliable products”

Vladimir Potanin, the second-richest person in Russia, has advocated for a central bank digital currency (CBDC), saying that it can boost technological innovation. Potanin has also stated that a digital ruble can replace private cryptocurrencies.

Russian billionaire supports a CBDC

Potanin stated that while a digital ruble could offer immense benefits to traders, private cryptocurrencies such as Bitcoin and altcoins were “unreliable products” that were risky to investors. He also added that a CBDC would be centralized and controlled by the Bank of Russia.

Despite advocating for a digital ruble, Potanin also supports digital currencies. He said,

Metal coins were replaced by paper money, and then transactions became cashless. Digital financial transactions are just the next stage.

However, Potanin added that a digital financial sector should not focus on private cryptocurrencies, as these were hard for authorities to monitor. As such, a digital currency that could be closely monitored by the Russian authorities was a better solution.

The billionaire is an investor at Atomyze, a crypto startup in Switzerland. The firm integrates blockchain technology into its functions to convert physical assets and properties into tokens. Atomyze’s Russian subsidiary recently received approval from Russian regulators to offer these services in the country.

Crypto regulations in Russia

The Bank of Russia has also been sceptical of private cryptocurrencies, and instead, it has advocated for a CBDC. Last month, the bank likened cryptocurrencies to a pyramid scheme. Sergey Shvetsov, a member of the Board of Directors at the institution, stated that the bank was willing to start testing digital projects that complied with the local laws.

The president of the Russian Federation, Vladimir Putin, has been rather supportive of private cryptocurrencies. he has previously stated that crypto-mining could benefit the country. Putin has urged the Bank of Russia and the relevant regulatory bodies to “come to some kind of unanimous opinion” about the crypto sector.

The Minister of Finance in Russia, Anton Siluanov, has also stated that local banks should offer digital asset services. He added that crypto trading should be similar to gold and precious metals investments. 

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