Russian Prime Minister Dmitry Medvedev issued a surprising statement on cryptocurrencies last week. In a speech in Russia on January 15, Medvedev said that the current crypto-bear market should not be a reason to "bury" cryptocurrencies.
The encryption prices have decreased up to 90% from the highs of December 2017 and January 2018. We are in the middle of a prolonged bearish market. Despite the depressed enthusiasm of the market, however, Medvedev believes there is a promising future for cryptocurrencies.
Meanwhile, the Russian parliament is also discussing whether or not to approach a long-awaited law on digital resources. At national level, Russia seems to be aiming to develop crypto-friendly rules and this support extends to the highest level of government with the office of Prime Minister Dmitry Medvedev.
The Russian Prime Minister and the former president urged the public to closely observe the state of the crypto markets. He mentioned things like the extraordinary volumes of volatility in the last year, arguing that it should not be a reason to "bury" cryptocurrencies despite the market crash:
"Of course, it's not a reason to bury them [cryptocurrencies]. There is both a positive and a dark side here, as well as in every social phenomenon and in every economic institution. We should monitor closely what is happening in space. "
Medvedev made his remarks in a speech at the X Forum Gaidar, as reported by the Russian news agency TASS.
Medvedev's speech has largely covered uncertainty in the global economy. While the economy is going through a period of uncertainty, we are faced with new challenges related to digital transformations and protectionism. Medvedev said that the challenges facing the global economy "are now completely in front of us" after a decade of predictable problems:
"The last decade has brought many challenges, in part, they were quite predictable, in many ways they have become unexpected, and now both developed and developing economies are facing them".
Medvedev mentioned issues such as the structure of the energy market, the growing diffusion of green energy sources, the increase in protectionism and the intensification of competition.
Medvedev believes that the cryptocurrency situation should be monitored
Most of the most important politicians have avoided making final statements about cryptocurrencies. Medvedev, however, took a different approach, arguing that we must monitor the situation carefully with cryptocurrencies waiting to see where they go.
"We should look closely at what happens to them [cryptocurrencies]", Explained Medvedev.
These comments exist in stark contrast to other politicians. Some politicians are ambivalent to cryptocurrencies. Others seem decidedly opposed to cryptocurrencies. Medvedev, however, seems to believe that the crypt has potential and that the Russian government can benefit by monitoring cryptocurrencies to see where they go.
Overall, Medvedev's cryptocurrency remarks were only a brief part of his speech. Medvedev also touches on other digital innovations, such as the development of 3D technologies and the emergence of "digital twins", or virtual prototypes of products or physical processes.
The Russian Government has already taken steps to formalize crypto surveillance. Last week, the State Duma discussed a draft law on encryption. The highly anticipated bill concerns "digital assets", which is the term preferred by the Russian government for encrypted technologies.
The Russian parliament first approved the initial reading of the encrypted in May 2018, although the new version was modified after criticism by the crypto industry. For example, the bill lacked substance with regard to the mining sector and was postponed to the first reading stage.
While other countries seem to ignore the cryptocurrencies, Russia is actively working with the crypto industry to develop clearer regulations. As Dmitry Medvedev's speech last week indicates, crypto support seems to extend to the highest levels of the Russian government.