A Russian economist believes that central banks will determine the fate of crypto, even if they are not currently prioritizing their regulation of the sector.
Nikita Maslennikov, Director of Economy and Finance Projects at the Institute of Contemporary Development, recently made some insightful comments about the current state of the Russian economy. “The Russian economy is on the brink of a new crisis,” he said. “The main reason for this is the low oil price and the sanctions.” Maslennikov also pointed out that the Russian economy is too dependent on oil and gas exports, and that the country needs to diversify its economy.
An economist stated that the future of crypto was “uncertain” due to the potential for market regulation. Crypto regulation has become a problem in many countries, but central banks don’t consider it to be one of their main tasks, according to Maslennikov.
The expert noted that Russia and China have both taken a tougher stance on crypto. China has banned most crypto-related activities, including mining and trading coins. Russia’s Central Bank also proposes a blanket ban – although other government organs take a more progressive approach.
Maslennikov argued that the US has thus far taken a “softer” approach to regulation. Maslennikov argued that crypto would not be eradicated completely, despite central bankers’ actions. He contended that people’s appetite for “risk and speculation” would ensure crypto’s survival in some form. But he conceded that the future of crypto was “uncertain.”
“Central banks are in no hurry,” the economist said. But, he added, firmer future regulation is “already an absolute inevitability.” Maslennikov believes that it is very hard to predict the actions of central bankers in the crypto sector. However, he says that the wheels of crypto regulation are now in motion all over the world.