Russian official denies reports of $10 billion Bitcoin investment

17 Jan, 2019 | Updated: 17 Jan, 2019
by David Robb
Bitcoin
Russian official denies reports of $10 billion Bitcoin investment

Rumours circulated recently that Russia's government may be pivoting towards a major crypto investment. A senior Russian official has now insisted that these reports are false, according to Forklog.

In a story that was widely circulated last week, it appeared that Russian official Vladislav Ginko was suggesting that his country would be investing around $10 billion into Bitcoin as a way to improve its own financial situation amidst U.S. sanctions. This would be a similar strategy to those adopted by Iran and North Korea.

Read more: The US is trying to stop Iran from making its own cryptocurrency

The story was since exposed as a fake, despite being reported by Bitcoinist and other reputable crypto news outlets. Now Elina Sidorenko, chairperson of an interdepartmental working group of the State Duma, has claimed that this kind of investment would never have been plausible anyway.

She claims that, in these rumours, "there is not a bit of common sense, much less ideas that would be considered in government circles. The Russian Federation, like any other country in the world, is simply not ready today to somehow combine its traditional financial system with cryptocurrencies. And to say that in Russia this idea can be implemented in the next at least 30 years is unlikely to be possible...(we) simply cannot do this, due to the fact that we do not have any mechanisms that would allow us to introduce a system, where these assets would be stored, which authorities would be responsible for it, which would be responsible for abuses..."

Although investment in the current crypto market is unlikely, the implementation of a Russian state digital token may still be a possibility. A blockchain-based 'crypto-ruble' would offer direct conversion of the country's fiat currency into digital form, and this has been tentatively scheduled for 2021. This will hopefully be closer to the model of Sweden's new e-krone, and not Venezuela's controversial Petro.

Read more: Russian official says 'crypto-ruble' will be launched in 2-3 yearsVenezuela crypto, Petro's price is changed (again), this time 300% upSwedish financial regulator warns public about people offering e-Krona

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Read more about: Bitcoin (BTC) Russia

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