MOSCOW - Bitcoin is not appropriate for use within the Russian economy since it is based on foreign cryptocurrency algorithms, Russian Communications Minister Nikolay Nikiforov said yesterday, moreover adding the country was capable of designing its own digital currency.
“Bitcoin and Etherium are cryptocurrencies developed on the basis of foreign cryptography. Russia has its own cryptography school. I think we are absolutely capable of creating a cryptographic unit, a tool, based on the blockchain technology, and work out concrete regulations to set the framework for the operations,” Nikiforov told reporters.
The minister warned of “blindly worshipping Bitcoin,” stressing the currency is alien to Russia, as it does not use Russian cryptographic technologies.
Nikiforov gave assurances he would not make any personal investments in Bitcoin.
He said the Russian Ministry of Telecoms had developed proposals on regulating cryptocurrency in Russia.