Telegram founder, namely Russian Pavel Durov, has criticized the proposal of the Central Bank of Russia to issue a ban against cryptocurrencies in the country.
Telegram founder’s words on the risk of cryptocurrency ban in Russia
In fact, a few days ago the very Central Bank of Durov’s country actually asked the government to ban cryptocurrencies. For now, the government has not yet responded to this request, even though it had already been addressed to it other times in the past and in the end had always refused it.
Durov wrote in a post on Telegram that the Russian Central Bank’s proposed cryptocurrency ban would lead to an outflow of IT specialists from the country, destroying numerous sectors of the high-tech economy.
“No developed country bans cryptocurrencies. Reason: such a ban will inevitably slow down the development of blockchain technologies in general. These technologies improve the efficiency and security of many human activities, from finance to the arts”.
Durov’s stance is in line with those of other Russians who are involved professionally with cryptocurrencies and blockchain, so it’s as if his statements represent an important segment of Russian companies in the industry.
According to Durov, DLT-based solutions using cryptocurrencies as the unit of computation are replacing outdated centralized financial systems dating back to even the second half of the 20th century. He also points out that some neighboring countries, such as Ukraine and Uzbekistan, are following other developed countries by adopting progressive laws related to the blockchain industry.
Regulating instead of banning
Durov actually argues that states that decide to stay away from these new technologies will remain on the sidelines of technological and economic progress.
He also points out that to date Russia is one of the leading countries in the world in terms of the number of highly qualified specialists in the blockchain sector. So banning cryptocurrencies could produce harm, while instead he suggests adopting thoughtful regulation that would allow the country to:
“balance the distribution of forces in the international financial system and become one of the main players in the new economy”.
Durov argues that the desire to regulate the circulation of cryptocurrencies by any financial authority is absolutely natural, but the Russian Central Bank would actually be “throwing the baby out with the bathwater.”
In fact, it argues that it would be unlikely that any ban would actually stop bad actors in this market, while instead it would certainly shut down projects entirely.
In other words, the Russian believes that it would not be worth the risk, and therefore urges the government to consider the proposal in a balanced and rational way.