Russia has taken several measures in the last years in order to regulate the cryptocurrency market. But it seems that cryptocurrencies may have also positive aspects for the economy. Alexei Lazutin, Chairman of the council of the National Association of Pawn Shops, proposed to allow small businesses to receive crypto loans.

Cryptocurrency Expansion in Russia

One of the most important aspects of cryptocurrencies is their power to produce wealth. Several countries have been receiving important investments from different companies just for having an open policy towards virtual currencies. This is the example of Japan, that its GDP grew by 0.3% only because of cryptocurrencies. 

And something similar is what Alexei Lazutin has in mind when he proposes to allow crypto loans.

As reported by Russian Parliamentary newspaper, Mr Lazutin said:

“If we establish and implement mechanism that will allow us to receive crypto backed loans from the credit institutions, this will help to attract money for the development of small businesses from abroad, thereby contributing to the development of the Russian economy as a whole.”

Once the proposal was made, the chairman of the council gave instructions to the rural credit cooperatives. He asked to research and educate rural populations about the new technological developments, including virtual currencies.

Small towns and villages are sometimes outside the technological changes that take place in big cities or important economic centres. Evgeny Shulepov, a member of the State Duma of the Russian Federation believes that villagers need to be updated with the current trends.

“In order to be in the trend, Rural credit cooperatives have to expertise in blockchain and cryptocurrency. The Rural credit cooperatives will be studying about blockchain and the trends in the said field,” Mr Shulepov added.

Russia and Cryptocurrencies

Russian authorities have been analysing the cryptocurrency market very carefully. The intention is to regulate the market, miners and enterprises dealing with cryptocurrencies. The government is also working in order to create its own cryptocurrency known as the Cryptoruble. Additionally, the country has created two cryptocurrency agencies in Vladivostok to promote cryptocurrencies and blockchain technology.

Russian president, Vladimir Putin, has been in different meetings with Vitalik Buterin, Ethereum’s founder. Just some days ago, the first blockchain school has opened its doors in Moscow. Indeed, Buterin will be part of the project acting as a consultant.

Russia is one of the most important countries on earth and can influence the decision of other countries. The markets follow very carefully the measures taken by Russia. At the moment, there is no regulation in Russia, but the government is trying to control the whole market.

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