Crypto-revolution: Unstoppable, Which Will Lead?

We are all used to real money, which you can pick up and spend in any store. With the development of computer technology, we have gradually become accustomed to non-cash settlement systems, now  appearing a new player on the market -digital currencies or cryptocurrencies, have created a real “crypto-boom” in Russia. Citizens are ready to sell apartments, trying to earn on mining or by the increasing rate of Bitcoin and altcoins, while the authorities are looking for ways to regulate the crypto-market . On the subject of currency exchange, we talked with Alexander Kurdyumov – a candidate of economic currencies, a deputy of the State Duma, and a member of the Presidium of the LDPR faction.

– Recently, cryptocurrencies are becoming more and more popular, what is your attitude to this?

Now a completely new era of money has started. I would even say cryptorevolution. There is a new trend, which is rapidly reclaiming the place under the sun. In society, there is a request for some kind of analogue to the current system. And cryptocurrency became it. Now the process cannot be stopped – the cryptocurrency will take its place in the world economy, but which one is still a question.

– As an economist, could you assess the potential of the cryptocurrency? Why are they popular? What tasks can be solved? Why these problems can not be solved by the use the fiat money?

Over the five centuries of the existence of banks, nothing radically new has happened, and the cryptocurrency is what will change the monetary system of the whole world. The monopoly of states on finance will disappear. There will be no intermediaries between people and the state in the form of banks. We ourselves can directly pay money to anyone and to each other.

– The authorities say that they are going to regulate the turnover of the cryptocurrency. In what direction should this regulation go, in your opinion?

-The desire to earn on cryptocurrencies is spreading with incredible speed. Since the Russian Federation, there is virtually no legal basis for regulating virtual payments and legal regulation of trading Internet sites, all transactions involving the transfer of money are made by their owners at their own peril and risk. The research results show that virtual money has become very popular in the sphere of fraud of various kinds and even extremism. The exchanges in the meantime work on foreign hosting platforms, so it’s difficult to block them. Therefore, it is better to legalize this sphere and regulate it. Law enforcement agencies find it difficult to calculate criminals who pay with cryptocurrency. In fact, they remain invisible to law enforcement. Our task as legislators is to draft this bill in the Duma State, which in effect will legalize the cryptocurrency and prescribe clear rules for using it.

– Not so long ago, the Ministry of Finance announced that it intends to prohibit the sale of Bitcoins to ordinary people – only on the exchange and only to professional traders. Do you think that this is a justified measure? How can it be implemented?

This measure is justified. In fact, now any person can buy cryptocurrency. Nobody doubts that cryptocurrency technology is the future of the world financial economy. Millions of people came to this industry to increase their assets. And a low entry threshold makes it possible for anyone who wants to increase their assets by hundreds of percent. With increasing demand, it is necessary to regulate this issue. For example, a license and a profit tax. Of course, these topics are subject to interdepartmental discussion, regulation should be proposed, but to which exactly is the prerogative of our Cabinet.

– Russia plans to release its own “crypto-ruble”, why should our country have its own digital currency?

The digital currency is in demand. But Russia, as is known, often goes its own way. Now a very powerful economic wind is blowing into the sails of the participants of the crypto-market. If the Russian state creates a favorable regulatory and tax environment that will be better than that of other sectors of the economy, this can turn into a long-term trend. It is important that the Russian-speaking teams remain in Russia, having found real support in their country. One of the priorities for today is to make sure that Russia has a chance to become the geographical center of the new economy.

– The BRICS countries are also discussing the possibility of creating their own digital currency, what do you think has caused such a widespread “boom”?

Within the framework of the BRICS, the cryptocurrency can replace the US dollar and other currencies used in settlements between the participating states. Turnover is very convenient to carry out in electronic currency. Some major international projects are implemented through cryptocurrency. This is convenient for the fact it is an alternative to any hard currency. The use of “Bricscoin” will promote the development of a mutually beneficial economic cooperation, reduce foreign exchange risks, increase trade, and facilitate the access of companies to the BRICS markets. By the way, the last summit actively discussed the issue of overcoming dependence on the dollar. They agreed to gradually exclude the dollar in the mutual settlements between the BRICS countries and BRICS + (plus – Egypt, Guinea, Mexico, Tajikistan, Thailand). The Chinese leader then said that the foreign investment of the BRICS countries amounted to $197 billion in 2016. But only 5% of investments took place between the countries of the “five”. This is not enough, and calculations in the national currency will give an impetus to investment.

– How do you personally treat cryptocurrencies? Do you have any Bitcoins or altcoins?

A few years ago it was difficult to understand what is cryptocurrency, where to take it, and where to spend it. To present date, Google, Amazon, Microsoft, Sberbank among many others are actively investing in a new financial instrument. For many, this is an ideal opportunity to have time to create your fortune on the development of a new global financial instrument. I treat such things with caution. As a person who remembers the the financial pyramids in the era of the 90s….mmmm … in my opinion, cryptocurrency is essentially the same “bubble”, which at any time can burst. Only time will tell how it will turn out in reality.

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