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Former Russian Prime Minister and President Dmitry Medvedev thinks it is time to acknowledge the significance of cryptocurrency and CBDCs.
According to Russian former Prime Minister Dmitry Medvedev, confidence in state-backed digital currencies would be “immeasurably higher” than trust in private cryptocurrencies such as Bitcoin (BTC).
Medvedev, the incumbent deputy chief of Russia’s Security Council, spoke of cryptocurrencies and central bank digital currencies, or CBDCs, at the Saint Petersburg International Legal Forum on Tuesday, local news agency TASS reports.
The official emphasised the critical importance of digital openness in new financial technology such as private cryptocurrencies. “It is time to recognise their significance,” Medvedev said, emphasising the presence of modern emerging types of currency, such as central bank digital currencies.
“It is essentially a new form of money, and their trust will be immeasurably greater than trust in cryptocurrencies,” Medvedev said. The official also stressed that the implementation of state digital currencies should provide feedback from all financial market stakeholders:
“We must not allow global standards of conduct […] to become an instrument of international economic totalitarianism. All actors, state and non-system must be involved in the development of these approaches.”
The announcement comes only days after the Bank of Russia’s first deputy governor, Olga Skorobogatova, confirmed the central bank’s intention to complete a digital rouble prototype by the end of 2021. Earlier this year, Bank of Russia deputy governor Alexey Zabotkin said that Russia expected to begin CBDC pilots in 2022, following the introduction of digital rouble plans in late 2020.
Though Medvedev is adamant that CBDCs such as a digital rouble would be synonymous with more confidence than crypto, some big crypto players are sceptical. Changpeng Zhao, CEO of the world’s largest cryptocurrency exchange Binance, predicts that CBDCs would be less appealing to the crypto community due to restricted freedom of usage and uncapped availability.
Medvedev, the Russian Federation’s third President, has been paying careful attention to the blockchain industry in recent years. Following the 2018 bear market, Medvedev said that a huge cryptocurrency collapse was “not a reason to bury” cryptocurrencies. The official also indicated that the government could not emphasise cryptocurrency enforcement due to the “decreasing” success of cryptocurrency in May 2019.