Vladimir Potanin, the second richest man in Russia, believes that it is safer to tokenize assets or use the country’s Central Bank Digital Currency (CBDC), the digital rouble, rather than using cryptocurrencies like bitcoin, due to the risks associated with this asset class.
The Russian billionaire’s stance is understandable given his investment in Atomyze, a startup that uses blockchain to tokenize and facilitate the exchange of real-world assets like metals and homes.
During an interview in Moscow, he reportedly said, “Unlike some cryptocurrencies, platforms like Atomyze offer consumers high-quality and secure digital goods and may squeeze unreliable products out from the market.”
Ban or Regulate? Russia Divided on Crypto
Last month, Russia’s central bank recommended that outright ban be placed on crypto in the country given the volatility of the asset class and how they are commonly used to facilitate illicit transactions, such as money laundering and terrorist financing.
However, the department director of the Russian Finance Ministry Ivan Chebeskov, mentioned that rather than banning cryptocurrencies, it would be better for authorities to regulate them.
With some authority members of the country having the same view as Chebeskov and others clamoring for the ban, the president, Vladimir Putin called on them to discuss extensively on the issue and reach a unanimous conclusion.
President Putin, while bearing in mind the dangers of investing in crypto, still cannot turn a blind eye to the economic advantages of crypto mining over countries like Kazakhstan that have cut off its electricity supply to crypto miners.
With the deliberation on whether to ban crypto or not still on-going, billionaire Potanin pointed out that the tokenization of assets and the use of the central bank’s digital ruble may put an end to the debate.
In addition, he believes that tokenizing real assets on the blockchain still provides some benefits that crypto gives. He said: “A digital asset or token is like a contract giving customers the opportunity to get a product or service in a digital form using blockchain.”
